When pandemic scare stories dominate social media, and stock markets ricochet from panic to optimism, what should a rational investor do?
Here are four helpful thoughts to keep in mind. They can help maintain your sanity as the latest news blows your emotions one way or the other.
PANICS ARE MORE COMMON THAN YOU THINK
Surely you must remember the great market crash of Oct. 27, 1997, when the Dow Jones Industrial Average plummeted 7 per cent because of panic over the developing Asian financial crisis?
Probably not. As it turned out, North American markets bounced back in short order.
Such mini-panics are more common than most people realize, according to John Huber, who runs Saber Capital Management LLC. Memories of many downturns fade quickly, Mr. Huber wrote in a note.