A lot is going on in the world right now, so let's get straight to the point.
Markets have been falling amid the start of Russia's invasion of Ukraine.
You've probably seen the effects in your own portfolio.
If so, you're not alone. The S&P 500 is down by more than 12% from its Jan. 3 all-time high.
It's times like these that typically cause investors to feel the urge to sell their stocks out of fear of further losses.
Before making that decision, you should ask three questions:
1) Do I believe that the long-term prospects of the companies I'm invested in have deteriorated significantly?
2) Assuming I believe prospects have deteriorated, do I think those expectations aren't already priced into the market?
3) If I sell, then under what conditions would I buy? This third question is critical because you have to consider scenarios under which prices only rise from here.
Let's be clear; it's certainly possible for prices to fall further in the short term.
With that said, the historical evidence continues to suggest the market will reward those who are invested over the long term.
Investing is a marathon, not a sprint.
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