What to Do When the Market Plunges
A recent question on everyone’s mind today is what do I do when the market plunges?
1. Don’t panic. Moat Investors take the long view of value. That’s why you waited for a margin of safety.
2. Spend extra time with your watch list. You can subscribe to our feedburner feed and get a link to download our watch list if you’re curious. Some of your watched stocks might now have the marfin of safety you seek.
3. Check your fubdamentals. If you’re invested in a stock that is falling, check to see if something has changed that would cause you to dump it, or is it just part of a short-term trend. Look at insider trading, management changes, changes in strategy, etc.
Likely you’ll find that plunges are not reason to panic but opportunities to find great bargains.
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