- Always be prepared for a correction
- We have not had a 20% correction since 2009 at the bottom of the correction
- How nervous are you in this correction?
- The pullback is expected
- If the market still was going to continue going up, this correction was needed
- Being able to see what you own in your portfolio gives you insight on how to take advantage of corrections
- You don’t invest in the stock market, you invest in businesses
- The noise that is happening right now in the grand scheme of things is irrelevant
- If you have the correct allocation this shouldn’t bother you
- Correction started by institutions and end with retail investors
- Rebalancing decisions must be made as long term
- Feel of rising interest rates and accepting those can be a reason for this correction
- Price to earning ratio (PE) people will pay for a stock based on future earnings
- People buy stocks based upon the future earnings of the company that are unknown
- But then they buy mutual funds and ETFs based on historical; performance driven
- Bong term investing means you stick to a process
February 5, 2018