Hi! Welcome back to my channel about investment and money tips with the purpose of achieving freedom and opportunities. Today, we’re looking a bit at the corona virus which have caused red numbers in the most markets. So if you have been in doubt about buying, selling or holding your stocks. Then watch this video where I’ll provide the answer. I’ll not talk too much about corona virus it self. I don’t know too much about it as I don’t read or watch the news. I know a lot of people that spend a lot of their time reading news, but when Iook what they’re reading there’s even more clickbait than on my YouTube channel I don’t feel that reading news provides me any value and that medias main purpose is creating fear. I can’t tell you a lot about corona and how it will evolve but I can tell you what to do with your investments. I see a lot of posts in different finance groups about the corona virus and what to do: buy, sell or hold? A lot of people have “lost” money and especially for new investors can this have a high emotional affect to see ones money being worth less or even much less compared to when you invested your money initially If you watched my last video, I gave an example of some real data from the SP500 index and looked at 3 scenarios for investors: 1) only buying at the top, 2) only buying at the bottom, and 3) one buying consistently. The one who performed the best was Steady Sarah that invested consistently This video is for long term investors I’m not a day trader so I can’t tell you about that but if you are a long term investor buying stocks using ‘buy and hold’ principle then this video is for you! Steady Sarah, that invested each year no matter the price managed to get the best ROI on her investments compared to only buying top/bottom by attempting to time the market and even by trying to time the market at the perfect spots you wouldn’t get a better return than by buying consistently Time in the market beats timing the market So given you are a long-term investor, don’t pay too much attention to the fluctuations in the market When I’m looking at my own stocks for this week they are down more than 20%! which is a great step back Looking at today, they vent back 11% Looking at last week, they vent down 23% The last month, they increased +16% Last 3 months, they increased 70% This is not my complete portfolio, but some of my individual stocks (that are the most volatile) this is just to show you the perspective because even though prices vent down this week looking just a month back, I’m still higher than when I started It’s super important to consider the perspective because the trees doesn’t grow into the sky there will be set backs because of fear, corona or something else. It’s a inherent part of the stock market. So if you just started investing this week: bad luck. but if you are patient you will gain it all back again within a reasonable amount of time stock prices will go up again given that you have diversified your investments The markets give a return of roughly 8% yearly on average after inflation (historically last 100+ years) This doesn’t mean it goes up 8% every year but that they do on average over time. There has been a big stepback now but I promise that the stock prices will go up again to same level when you bought or higher what you can do in this situation to take advantage of the lower prices buy some more stocks (at a cheap price) look at it as a discount, like Black Friday everything is on sale so if you have any cash you can buy some more stocks You can even create a new account for these stocks so you can see in the future how much these specific stock increased since you bought your new stocks now I cannot guarantee that prices are up in a month but if you just hold, prices will get back up No one can say if they go up or down tomorrow It’s also super easy to be clever looking back e.g. if I just sold last friday and bought today? or tomorrow? or next week? or when should you buy again (when do we hit the bottom?) It’s super difficult to time the market because you need to be right when both buying and selling your stocks It requires time, effort and expertise about the market in order for you to time the market So if you are a long-term ‘buy and hold’ investor then my best advice is to not care about the prices and buy consistently follow your plan and see this as an opportunity to buy some stocks at a cheaper price if you are a long-term investor, your stocks will increase in value again and if you have been in the market for a long time then you will still be very positive overall in your gains compared to when you made for initial investments even after a small step back this week. As I mentioned in the beginning, I would give you the answer to what to do now: buy, sell or hold. The answer is: follow your plan that you made when buying your stocks maybe you say: “I had no strategy when buying my stocks” but if you don’t know when buying you stocks, when you want to sell then it will be an emotional roller coaster you are in for a ride in! here in the stock market because the prices go up and down all the time my recommendation, is to make a plan before buying your stocks so that you have an idea of when to sell them so even if prices go up or down, you know within when to sell So follow your strategy, if you’re a long term investor which I would say most hobby investors should be those who doesn’t have time to spend hours a day trading stocks then my advice is, continue buying stocks as you do delete your investment apps so you don’t get distracted with the current fluctuations there is a lot of psychology in stock trading so just buy consistently (like Steady Sarah) When you are a long-term investor, you probably don’t want to sell the next 20 years anyway then its your pension or mean for early retirement (FIRE) then this step back is very minor in the big picture Be patient and spend your time on other stuff that makes you happy so the prices doesn’t affect you in a bad way spend instead time on something positive which creates joy and then the prices will soon be back up as they were before this weeks drop If you liked this video and want to see more about investments, please give it a ‘like’ (I love you) I do my best to make a new video each week so you can have new content about money each Saturday subscribe for my channel to see the latest videos and click the bell to be notified about new uploads See you and happy investments!