Rational Advisor

Markets correct. Each correction feels different and bad. But that’s what markets do. We’ll get through this one as well. And unfortunately, it won’t be the last one.

You can’t put a time stamp on it. The market will be in better shape once we’re through the situation we’re in, because transparency will be better and leverage will be down.

We say, have a plan and understand the plan with a reasonable expectation for market returns over the long haul, and then, very importantly, do a gut check. If you can’t sleep at night, be less aggressive, but recognize the trade-off. Will stocks do better over the next two, three years? Who knows, but you need to take risk to get reward over time.

If you are in your prime savings years — and the median baby boomer is 52, I believe — you want the markets to be flat to down, then rally as you work your way toward needing to consume your capital, because you are putting the money to work at lower prices.

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