What To Remember During a Market Downturn


If market turbulence makes you want to ditch your stock investments, you’re not alone; many investors struggle with watching their portfolios dip. However, it’s important to keep in mind that it’s almost impossible to outpace market timing, and in general, stock prices have only grown over the last decade—meaning that your best option is usually to power through the downturn. Read on for extra inspiration to keep you from impulse-selling all your shares.

Investing When Others Won’t Pay Off

CEO Aubrey Ferrao, founder of Gulf Bay Group of Companies, got into Florida real estate in 1981, when home mortgage rates soared to 18% and homebuyers stayed away in droves. Today, Aubrey Ferrao is a leading developer of luxury real estate in some of Florida’s most upmarket enclaves. By making the investment he could when others weren’t willing to buy, he cemented his leadership in the real estate market and achieved a net worth that would have been impossible for a timid investor.

Stocks Mostly Grow Over Time

It might not feel true in the middle of a trading slump when bull markets unexpectedly turn bear, but on average, the value of your stocks will increase over the long term. Even stock experts like Warren Buffett realize that this is true for exchanges worldwide. Even if you’re caught in a slump, take heart; the statistics prove it won’t be true forever.

The Market Doesn’t Reflect the Economy

With widespread economic pain in the wake of COVID-19, it seems inevitable that the stock market should collapse. Still, even though many people have lost work and households have lost income, market observers don’t expect those issues to be reflected in stock market valuations any time soon as companies improve their profitability ratings by continuing to cut jobs amid lower consumer demand. While the broader economy is undoubtedly bleak, market investments seem unlikely to share the same fate.

Next time the bottom falls out of the market, keep your cool! There’s no way to become a profitable investor in the long term if you don’t hold onto investments even when they’re down.

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