Remember these kind of financial bumps in the road, happen fairly often, this is another example. A slight hommage to the original Planet of the Apes (the title is a quote done by Charleton Heston), but it does sum up the financial world (again), it is a Mad House! Seems like only yesterday the entire world financial system dangled over a precipice, this is getting a little repetitive, don’t you think?
Given the financial world is in turmoil (again) I keep getting asked, What do you think folks should do?, and the answer of course is: it depends. Don’t expect a straight answer from me on this one, you folks should decide things for yourself, but I can say what I will be doing: nothing much.
As I am mostly passively invested using Index Funds (that are not ETFs), I couldn’t react quickly enough to sell before the big drop, so I am now going to simply not look too closely, and remember that due to this drop in the market:
- The lower index fund price means next time there is a dividend buy back (DRIP)I will get more shares of the fund.
- If I find some money, I will have some bargains that I can then use to re-balance my RRSP and Spousal RRSP accounts.
- Banging my head on the wall about losing this money is counter-productive, just watch and make sure this isn’t the literal financial apocalypse (in which case there still isn’t much I can do), and wait.
Should you do this? I have no idea, what makes you feel comfortable is what I would advise. If you wish write down a few of the platitudes spouted by the various financial talking heads and maybe make up a bingo card with them for the next financial mad house (possibly turn it into a drinking game).
Keep going with your strategy. It made sense before it still makes sense your just freaking out.