How To Invest During a Decline

Don’t Focus On The Media

Waking up to the doom and gloom of the headlines and news that the US Economy is in a downward spiral reminds me that we should review some of the principles of why we need to stay focused, avoid our gut reactions and keep on keeping on. Let’s jump back to this piece I had written a couple years ago that quickly talks about why we should continue to invest during a market decline.

We Feel Like We Need To Do Something

Recently, I was out to dinner with someone. Okay, it was a date. I was on a date. I didn’t sense any romantic sparks fly this time. However, it was a good time and we had a great conversation. 

We were talking about current events and the craziness that is a post covid world, dating in your 40s, and most recently how the stock market is doing and the decline we are in these last few months. 

As we were engaging in good conversation, she then references the market decline, and says, “Yeah, I gotta figure out what I’m going to do with my investments, like my 401k, or where I should put them because the market is down like 25%!” 

I calmly stated, that I think this is actually the best time to leave your investments right where they were. I also mentioned if you were regularly contributing to these investment accounts, like through a payroll deduction, to just keep doing it. 

My date looked at me rather puzzled, and didn’t quite understand why I would say such a thing. I then asked her when she was thinking of retiring and when she’d need to use those investment accounts.  Realistically, she said she wouldn’t need that money until she was 65.

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