Last week, Thad did a great job of illustrating why it’s in your best interest to stay invested during volatile times. We thought a word picture would also help!
Have you ridden a roller coaster in a while? I bet you can still recite the safety instructions that are repeated over and over again as you wait in line. It’s usually muffled as the recording makes its way through an old rusted speaker.
Remain seated at all times. Keep your hands, arms, and legs inside the cart. Make sure your personal belongings are secure.
If you follow these instructions, the evidence suggests that you won’t get hurt. If you DON’T follow these instructions, there is a much greater chance of getting hurt.
The same is true when investing in the stock market. If you remain seated (invested) and keep calm, the evidence suggests that you will be okay long term. If you panic and stand up (sell your investments), there is a much greater chance of getting hurt!