Volatility is the price of entry
Declines in the stock market are PAINFUL!
We see a lot of studies and articles showing how ON AVERAGE, stocks go up OVER TIME by 8-12% etc. The operative word here is AVERAGE, and OVER TIME.
Unfortunately, over a short time frame, stocks don't actually only go up in a straight line. I wish! Our human brains and emotions are wired to want to see markets constantly going UP only. We probably can withstand a 5% drawdown but anything more than that and our fight or flight instinct kicks in.
How about seeing that as an ADVANTAGE? Think about it. If stocks went up consistently over time, everyone would be in it! It becomes a no brainer! And when it is a no brainer, prices will get bid up to a point where the long term average returns will only be a bit better than bonds. Hardly the 8-12% you will get long term.
Therefore, perhaps it is better to see ENDURING THE VOLATILITY as the TICKET PRICE of getting the higher returns from investing in the stock market?
In the meantime, guard your hearts...and be at rest...