Why I Don’t Worry When the Market Drops
00:00:00.000 | Now, obviously, I don't like headlines of the market crashing.
00:00:02.320 | I'd rather the market be up 10% or 20%.
00:00:04.680 | However, one of the principles I adhere to is that all of the money that I have invested
00:00:09.620 | in the stock market is money that has at least a five-year horizon.
00:00:14.060 | So if I have money that I need for a down payment, a tuition payment, anything really
00:00:18.620 | that I'm going to spend in the next five years, I keep that money in cash and not just 0%
00:00:25.000 | cash, but cash in a bank account or money market fund or treasuries, anything in the
00:00:29.980 | market for me has a five-plus-year horizon.
00:00:32.620 | That means that unless the market doesn't recover over the next five years, it being down 10%
00:00:38.900 | right now or 20% or 30% or whatever that number ends up being doesn't have a huge impact on
00:00:44.320 | my life other than whatever emotional toll I let it take on me while it's happening.