A lot of the shares I own, and a few I bought last week, are down too.
It's not fun to 'lose' money, even if it's not really a loss. The number today is smaller than the one yesterday. It's even less fun to see something you bought a couple of days ago much cheaper now.
You might remember the post where I talked about buying Santander on a whim. Well, Santander is now worth about 40% what I paid for it. Nice going, genius :)
Luckily these price shifts don't bother me much, and I find them bothering me less as time goes on and I get more used to them. I'll be buying stocks for a long time, so price falls are probably going to help me in the long run, and more importantly, I have a plan.
There are a few takeaways here.
1. You need to know why you are doing what you are doing.
I have a simple plan. I will buy indexes and individual shares in order to build up passive income from dividends. I will never sell anything. This is not a very good plan (it's tax-inefficient and will probably perform less well than a better-designed one) but it suits me and my character. I find it easy to implement and somewhat fun.
2. Indexes are safer than individual shares.
Most of our investments are in large passive indexes, and those indexes don't move anywhere near as much as individual shares. It's also much easier to make decisions, as you only have to decide how much to buy, not what to buy. You can buy when prices fall because the market is cheap. This is different from buying an individual share when it falls, because there may be a problem with the company.
3. Your circumstances matter.
I'm happy right now because I am buying shares and will continue to buy them for the next several decades. Temporary price falls are interesting, not scary.
If I was living off the income produced by my portfolio, price falls would be terrifying.
Your plan has to match your circumstances.
I hope everyone is enjoying the new year despite (or because of) the action in the stock markets. Be careful out there!