Newton’s third law of motion that states what goes up must come down applies not just to the forces of gravity but describes the behaviour of markets as well.
Investors know all too well the cyclical nature of markets and equities – that stock prices do go up and come down. The general response of investors and traders when markets hit a low is to panic and give in to fear. Contagious fear hits giving way to a stampede of investors rushing out of the markets – a scene reminiscent of The Crash of 1929.
How far are we from achieving financial freedom? How can we shake off the shackles of unending financial commitments that hamper our desired lifestyles?
So, is it all doom and gloom when markets are lacklustre? Market experts don’t think so. Every cloud has a silver lining they say. Leading the way is Warren Buffett who said, “Be fearful when others are greedy and be greedy when others are fearful.”
Here are three things to consider when markets are limping badly:
In times of uncertainty, do not be affected by the pack mentality of the trading masses. Remember, a sensible action rather than reaction to the market indicators is what a grounded investor needs.
http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=2961041 accessed 22 September 2015
http://www.fool.com/investing/beginning/2015/08/29/why-a-stock-market-crash-can-be-a-wonderful-thing.aspx accessed 22 September 2015
http://www.forbes.com/sites/steveschaefer/2015/08/24/how-to-handle-stock-market-crashes/ accessed 22 September 2015
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