Euphoria. Disbelief. Fear. Panic. Self-doubt. Disbelief. Euphoria.
These are the emotions and feelings most people go through when a market has just peaked…
Now it’s headed the other way.
Normally investors go through these emotions over the course of a few months. This time they’re happening ALL at once!
At market tops, people are euphoric, stocks are going higher and everything is good.
Disbelief sets in when a shock to the system, like the coronavirus pandemic, starts making headlines and the market starts to gyrate.
Then fear comes when the market starts to fall every day and the bad news keeps coming. Panic starts when people sit down with their spouse and look at whether they have enough savings to survive, whether their job will be safe and how they’re going to pay for all those toys they bought when the market was at a record high.
Did they really need that quartz countertop or two-tone Rolex?
Self-doubt is probably the worst feeling. It’s a feeling of helplessness. It’s when people start second-guessing themselves. “The market has always recovered, but what if it’s different this time?”
If you hit self-doubt, you want to dig deep and do the exact opposite of what your gut is telling you to do.
But most investors don’t…
They’ll wait to see the market head higher, for days and maybe even weeks or months. Their recent experience will tell them not to buy into this rally.
They’ll watch it go higher, and then they’ll take the plunge and buy something, pretty close to the time they should be selling (if they had bought earlier).
That’s exactly what happened after the stock market crash in 2009. Buyers in 2009 could have made four times their money if they had just put that money in an index fund.
This time is no different. We will get through this. We just don’t know when the market will recover.
What we do know is that there are markers to look for…
For instance, we’ll eventually have a cure for COVID-19, a vaccine, and a shift in the number of positive cases and deaths reported for the virus. Also, companies will start rehiring, or not laying off as much.
Action Plan: You want to be dipping your toes into the market when you get that feeling in your gut that tells you not to.
And only then should you look for super-high-quality situations that have been absolutely killed by the market.
Tomorrow I will share my shopping list with you!
War Room members already have the list and know exactly what to do. It’s time you stepped up and joined us!