Market corrections are normal just like our ups and downs of daily life. When valuations and interest rate expectations are high, it corrects. A 10% drawback of Nasdaq is a similar case.
Key point: What to do? [Sad]
1) Selling and hold cash to obtain liquidity is usually the last resort. Reason: When do we know how low will it go and when will it rebound? [Glance] (Do let me know if you can foresee the future.[Happy] )
2) Holding and patience is the key (Warren Buffett rule)
By now, we should have sufficient cash holdings and reserve to sustain and gradual topup if necessary. Take it as an opportunity not a pessimistic end of the world scenario. It may fall lower or even head into recession, gradual topup. If it starts to recover, we have benefitted.
The important lesson of the day :
"Stock market is a device that transfers wealth from the impatient to patient. " - Warren Buffett.[Miser]
#please DYDD (Do Your Due Diligence).
Comments