Everything Will Pass, and You Will Be Wealthier

[Everything will pass, and you will be wealthier.] CLEC Investment and Financial Education Channel. Post date: March 16, 2020

1. Insist on long-term investing and never sell.

2. Over the past ten years, from 2009 to now, all trading has been unnecessary and has hurt our returns.

3. The pandemic and oil issue are temporary. Their impact on the economy is deep, but not long-lasting.

This rapid decline is unprecedented. Even Buffett said that in his 89 years of life he had encountered it for the first time. Buffett's bank and airline holdings were hit even harder. Our index holdings are relatively safe.

When the market falls quickly, there is a problem of broken funding chains. In a bear market, funding chains break and everything falls. This is normal, so there is no such thing as a hedging asset except cash. But after this chain break ends quickly, after everything that needs to be sold has been sold, the market will rebound very quickly. So we must stay steady and must not sell. After the pandemic passes, the market will recover quickly and reach new highs again.

As long as you ignore the current market volatility and do not focus on market declines or shrinking assets, close your eyes and it will pass quickly.

The market has been like this for 200 years. So this is not a big deal, and it is not the end of the world. Everything will pass, and you will be wealthier.