Yikes! Things are not looking good on the stock market. The banking sector is floundering after the collapse of Silicon Valley Bank and Signature Bank. First Republic and other regional bank stocks are tanking. Credit Suisse dropped to a new low due to liquidity issues.
If this doesn’t send chills down your spine, I don’t know what will. Fear, uncertainty, and doubt (FUD) are spreading to other sectors. Oil prices fell sharply. Tech layoffs continue. Is this the beginning of the long-awaited recession? Nobody knows, but the stock market will be very volatile for a while.
This is a crucial time for investors. Our first instinct is to escape from fear and pain. I feel it too, but I know I need to resist it. Many investors will rush to sell and flee to safety. However, that’s the wrong move. This is how investors lose money. They sell when the stock market drops and they get back in too late. The best thing you can do when the stock market is crashing is nothing. That’s right. Just stay the course and stick with the plan.
