The point is wrote:
Obvious.
When the market goes down, you guys downplay your losses by telling yourself it is "just noise" and "healthy". You know, truly insightful and technical terms. You do not want to consider the probability that at some point in the near future there will be yet another massive sell-off and those in the market will lose their shirts.
All bravado and self congratulation when the market goes up; whistling past the graveyard when it goes down.
Incorrect! At least for me that is all incorrect. Completely wrong.
There are no losses until you sell. So, even though we are bumping up against an almost 10% drop (well...actually, it got there...got to 16,505 today and needed only to get to 16,515, so we have a correction!), I haven't lost a thing because I haven't sold.
Corrections are absolutely healthy for the market, and we've been long overdue for one. Weeds some people out and encourages new investors.
Anyone who loses their shirt in the stock market is a fool. It is so easy to safeguard against that. Buy stocks when you are working. Buy as much as you can but always 15% of your income minimum. Plan to retire with ZERO debt and a paid for house that you live in, OR enough money earmarked to handle rent increases until you die. When in retirement have 3 YEARS of expenses in liquid account (not stocks), and if the market tanks, use that and other sources of income (Social Security, rental income, etc.) to tide you over until the market recovers (because it will). If it takes 3 to 5 years or even longer (and that's fine because the SS will help you get to that point) to return to where it was, then fine. Better to have $1 million at 70 than at 65 because you have to pay for fewer years of living at that point.
Most people don't have the stomach for the stock market which is why most people aren't in it and even those that are, at least half of them need to either change their attitude about it or get out.
A proper investor takes the gains and dips as a given. Never too giddy when the market climbs and never too gloomy when it drops. Look at the movement of the market as an average (and it is UP over time; 73% of calendar years), invest money you don't need today and leave it there.