PSA: Possible stock market crash! should I sell now?
If you asked yourself this question then this article is for you
The S&P 500 this past Thursday (June 11, 2020) just took away all the gains of the past few weeks. Naturally many people were scared and wanted to sell during this time. If you were among these people then you need to ask yourself a serious question, is stock market investing right for you? There will be many days in the stock market (especially right now) where the market will be very volatile such as -6% in one day. If that scares you then you are not “investing”, you are speculating.
As an investor you do not only look at the green and red lines on the bar chart of the stock, instead an investor sees a company that creates goods or services, employs people, and makes money. So if there was a particular bad day on the stock market, then ask yourself has the fundamentals of the company changed? if the answer is no then there is really no reason to be panicking. As an investor you should always know the worth of what you are buying.
For example, most analysts can agree that Facebook’s intrinsic stock value is worth somewhere between $210 to $250. If you bought the stock at the current price $228.58 then you are probably paying a fair evaluation for the company. However if in the next 2 weeks the…
