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Mitch in $ Financial Freedom Chasers,

The Stock Market (S&P 500) TANKED this week. Thing to keep in mind before you PANIC

Some people get excited when they see the stock market crash. They smell opportunity. Others panic and run around like headless chickens and sell off their entire assets. Which one will you do?

If you follow the herd, you may be like everyone else and sell off all your stocks.

Now, the thing to keep in mind is that when you invest for the long term, it hardly matters whether the stock market rises or drops because in the long run, it almost always comes out positive. Another thing to keep in mind is that during extremely volatile times like this, people tend to overreact and sell WAY too much, hence making the price of the stocks more undervalued than usual.

Another thing to remember is that analytics are not always right. They are paid to write catchy headlines for top news stories and getting people to panic is more likely to garner them positve ratings and more views than if they were to say "Remain calm guys, the stock market will recollect itself pretty soon". So I'll make it my job to tell you that. Remain calm guys, the stock market will recollect itself pretty soon. It may take 1 week. It may take 1 year. It may even take a whole decade, but in the long run, the value of the S&P 500 has always trended upwards.

Next, those with retirement accounts need to remember that there is a huge fee to withdraw the money before you hit the age of withdrawal, so this is another reason to not overreact when the stock market is volatile.

So what will you do? Share your thoughts on the market in the comments below. Do you think the S&P will go back up? Or do you think it will keep getting lower and lower?