Problem
The age-old saying for investing is "buy low and sell high," but this is easier said than done.
Investors who panic about falling prices sell their investments, which in turn lowers the price and then generates a snowball impact.
Think about a position where all your investments are subjected to the stock market and prices are beginning to fall.
a) You do not want the money until retirement, which is in 20 years.
b) How would you react to this situation and why?
c) If you decide to sell, what would you purchase instead?