Markets Fall Too

TLDR; Nothing to do in response to stock drops. I'm just going to stick to my plan and console myself that things just got cheaper.

It was unpleasant watching the market fall yesterday, and if it falls again today, that will also be unpleasant. Since I own individual companies instead of broad indexes, it was rough seeing every name take it on the chin. I own value and growth. I own a variety of sectors and industries. They all got pummeled.

What to do? Nothing. Just watch.

But I can remind myself of a few things to help make sure that I don't do something stupid.

This Could Already be Over

Yesterday could have been a one-off event, or maybe it's the start of a longer down trend. I actually have my doubts about that unless global trade really blows up, but more importantly, I don't know. If I sell today, thinking that this will go on, markets could recover, and I'd be feeling like a dummy.

Falling Prices Make Future Money Worth More

I will save more future money than the money that's already in my portfolio. It's no fun watching past dollars lose value, but if there's a larger drop, I can console myself knowing that my future dollars will buy more of asset than it could have had prices risen forever.

There's no position in my portfolio that's so large I couldn't see myself adding to it, and falling prices make it a lot easier to buy more.

Selling Stuff Makes Tax Headaches

More sales equal more paperwork. I want to save myself as much paperwork as possible.

There's a Reason I've Chosen My Strategies

There's a reason I have what I have. I've done a fair amount of backtesting and research, and while that's not perfect, it does give me some idea of what's possible on the downside as well as the upside.

All I have to do is not freak out. Just follow the plan and let time do most of the work.

So there you go. That's what I'm reminding myself as the heads babble on TV and Twitter and blame this or that for why the markets move as they do. I don't know what's going to happen. Neither do they. Stick to the plan.