MARKET CRASH, HOW BAD WILL IT GET?

Understanding what is going on in the markets and how to handle the volatility

I want to share what I am thinking and doing after the painful correction growth stocks have suffered over the past few weeks.

I have read that the market is crashing because of inflation fears, the federal reserve announcing a halt to quantitative easing (money printing to stimulate the economy), the Omnicron virus variant, the algorithms, market liquidity, and many more explanations.

After a crash or sharp movement of the markets, there always will be reasons to justify what is going on. Nobody can weigh each of these factors. So how do we think about it and handle it?

I am sharing a very long-term journey so simply put the current correction is just that, a bump on the road. It is painful to see my portfolio lose value significantly but I know that sitting tight is the best way through.

But what is going on? Here is my explanation:

• we are in a secular bull market which means that the value of the SP500 and NASDAQ will be higher than today in 2, 3, and 5 years;

• valuations were stretched (…