The stock market is ‘plummeting’ and you’re seeing and feeling the losses chip away at your initial investment and it feels terrible. You don’t know if you can survive this period so you panic sell your stocks while you still have some to sell.
What if I told you that’s not the best decision you could make? What if I told you there are 5 reasons you should not panic sell your stocks?
Stocks are best as long term investments.
Your favourite stock has significantly dropped in value, you’re panicking. You’re losing money faster then you made it. But unless you’re in a bind and strapped for cash don’t touch that money. Remember your investment goals. Recalling your why will help you stave off the panic. Maximizing earning potential on investment takes time. Take real estate prices, for example, 20 years ago a Kingston property cost far less than it does today. Staying in for the long haul is more likely to yield the best rewards.
Better days are ahead
As well as being long term investments, stocks historically have proven that after a downturn the economy eventually recovers. Only a year ago Bloomberg listed Jamaica as the home of the world’s best-performing stock market. This recent steady performance of the Jamaica Stock exchange is a good indicator of the future potential of the local stock exchange.
You’ll lose big time
If you sell now you’re losing the most you’re likely to ever lose. Despite the doom and gloom reports the world is not ending and as long as the world stands the economy will return. Why would you want to take yourself out of the running of a stock exchange with a steady track record of growth?
Stocks are on sale
With shares being at a low price nows your chance to buy into the businesses you couldn’t access before. Consider this dip in prices as a sale. Some stocks are 50% off and it’s a good time to research and invest in strong businesses that have proven to survive similar circumstances.
You’re in control
The more you panic sell is the further stock prices will drop. Stick to your goals and you’ll be happy when the economy enters recovery.
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