This is Normal

Amar Pandit , CFA , CFP

Imagine it’s a very still day, and you’re in a boat on the ocean.

There’s no wind.

No swell.

The water is as flat as a mirror.

The calm goes on just long enough for you to start to feel like it’s normal.

When a small wave finally comes… it feels big. When a regular wave comes… it feels huge.

As scary as it might feel, it’s important to remember that waves are normal.

In fact, occasional storms are normal.

And the last thing you want to do when you get into a storm is abandon the ship.

As you know by now, waves and storms are an integral part of the stock markets. The only way to capture the returns of the stock market (over the long-term) is by not abandoning the ship during these waves and storms.