What to do when the stock market crashes
Read it here or watch the youtube video: https://youtu.be/Mi2qbS0qz4A
It has been a terrible week for stocks. Even worse, the entire time when we built our stock portfolio on YouTube since summer 2015, was a bad time for stocks. We are buying European stocks and the Euro Stoxx 600 index was down more than 12% during that time.
Be warned! Looking at past performance is the worst mistake that an investor can make because it gives dangerously wrong signals. If stocks depreciate, the portfolio is all in the negative red. That looks like stocks are a bad investment and should be sold. But if stock prices are lower, this is actually a good time to invest.
Warren Buffet thinks it’s a good time to invest now. When searching Google, another 200 000 search results agree. But when searching for a bad market in 2016, over 900 000 search results appear. Since more pages talk of a bad investment year 2016, you might be fooled into thinking that you should sell.
That might or might not be a good idea. What is sure is that the bad prospects of the Google search are already reflected in today’s stock prices. The markets can only go further down if the worries get even worse. We can’t tell if that will happen.
So what should you do instead of looking at the prices in your portfolio? Look at the Obermatt ranks in your portfolio. This video illustrates how this is done. You can access a Google Sheet template that allows you to do just that here: https://goo.gl/TcOCec
The Google sheet allows you to enter your portfolio and look up it’s Obermatt stock ranks. To get the latest Obermatt ranks, subscribe to the free Obermatt investment alert and you get a link to a csv file with the most recent ranks every week in your mailbox. Import this file to your Google sheet and — voila — you have the latest ranks of your portfolio. If it’s all green, don’t worry. Markets will turn eventually. They always have. If some stocks are red, look at them again and decide if you want to sell.
Subscribe to the Obermatt top 10 stocks alert: http://www.obermatt.com/en/home.html