It’s guaranteed that something bad is going to happen in the markets. Can some of these bad events become worse? Yes
But have all of the bad events become worse? No.
Whenever things seem bad, it’s wise to remember some fundamental truths about investing.
Risk is what you don’t see.
“The greatest risks are the risks that we don’t see and the most difficult problem is in preparing in advance for that kind of thing.” —Peter Bernstein
“The biggest risk is always what no one sees coming. If you don’t see something coming you’re not prepared for it. And when you’re not prepared for it its damage is amplified when it hits you. — Morgan Housel”
If you invest in anything apart from fixed deposits, you need to bear risk. So, what do you do? You should read this post ! 
But here’s the summary:
-
Markets will fall. This is what you get paid for.
-
Diversification is the best insurance against arrogance and the unknown. It’s also the only free lunch; grab it.
-
The best investors are not always those who have a godlike ability to pick stocks, but those who can behave well both during good and bad times.
If you can’t stick with your “best” investments when things are rough, it’s pointless.
-
Know what games you are playing. If you are investing for your retirement, which is decades away, a 4-5% fall doesn’t matter. It’s noise.
-
Daniel Kahneman once said, “Nothing in life is as important as you think it is, while you are thinking about it.” This is so true in the markets.
Whenever things seem bad, zoom out and take the long view.
- Finally, control what you can and make peace with the rest.
