Run for the Hills!

The markets FINALLY took a breather last Friday and Monday.  That presents a teachable moment, so let's also take a breather from our IRA Contributions series.

The markets had their biggest point loss EVER on Monday.  AAAHHHHH!!!!!  (On a percentage basis, it didn't even crack the top 10, but I digress.)

Should we run for the hills?

First - pat yourself on the back.  If you're a Financial Zen client, you deserve kudos.   I did not receive one single email, phone call or text about the markets.  That tells me that you are smarter than the average investor, and don't lose your head over a couple down days (even big down days) in the market.

Second - some perspective.  If you didn't know what happened the last two days and I told you you're up 26% over 15 months, would you be stoked?  I bet you would be.  Focusing on the long-term positive is a great way to deal with the short-term negative (and the negative is always short-term).

Third - should you worry?  If you were foolish enough to invest next month's mortgage payment in the stock market, then yes.  (If that's you, do yourself a favor and schedule an appointment with The Financial Zen Group.)  

If you’re a Financial Zen client, you don't have next month's mortgage payment in the market.  In fact, the ONLY money you have in the market is long-term...which means you don't have to worry.

So the last two days?  Meh.   It gave the financial news media something to blab about, so good for them.  Otherwise, who cares?  

Oh and the market snapped back 600 points Tuesday, proving once again that short-term market movements are impossible to predict.  Mr. Market loves to make fools out of people staring into crystal balls.