It's easy to get confused when you read or hear various experts' stock market forecasts. Some feel bullish, while others see disaster around the corner. However apt fears of an imminent implosion may seem, they actually reflect a short-term mentality that doesn't serve most investors well.
The simple truth is that no one knows what will happen in the stock market in the short term. Lots of people will offer guesses and opinions. Depending on their stature or reputation, you might stop to listen -- but very often, they'll be wrong. The 2008 stock market implosion took many people by surprise -- experts included. At the end of 2007, for example, most top-rated investment newsletters offered bullish outlooks for 2008. Oops.
The best way to deal with short-term market calls? Ignore them. You should only be invested in the stock market with money you won't need for at least five or 10 or more years. Besides, unless you're investing mainly in index funds, what really matters is how your particular stocks perform over the long haul.
Consider fiber-optics and glass giant Corning
Even when the market drops, some of your holdings may buck the overall trend. McDonald's
Don't pay much attention to short-term market calls, and don't let long-term bearishness worry you all that much, either. If the market suffers a drop, ask yourself whether your holdings are likely to keep making money, and whether their health or promise has suddenly changed for the worse. Invest in companies that look like long-term winners, despite inevitable market turns.
Want to become a millionaire? John Rosevear shares a simple secret right here.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Longtime Fool contributor Selena Maranjian owns shares of Intuitive Surgical, Corning, Wal-Mart, and McDonald's. Intuitive Surgical is a Motley Fool Rule Breakers pick. The Fool owns shares of Wal-Mart, which is a Motley Fool Inside Value recommendation and a Motley Fool Global Gains choice. Try any of our investing newsletter services free for 30 days. The Motley Fool is Fools writing for Fools.