"Trust your gut"

How often do you hear that?

So when the market falls 25 percent (or for some of these growth stocks, 60% or more), your intuition kicks in and you tell yourself that this isn't right... something feels broken... this is wrong... and you want out.

Now, one of the perks of being a member of Capital Gains Multiplier is being able to discuss your current investments with me 1-on-1.

And it's something that a lot of our members have been doing... because of the pullback in the past 18 months.

They're concerned about stocks they own that are down 20% or more.

Which I understand.

Market declines are never enjoyable.

But this is where we come to a crossroads.

Because it's times like this... when most people panic... "trust their intuition"... and cash out before things potentially get worse.

And then when they see the stock they just sold continue to slide the next day... they pat themselves on the back and congratulate themselves for a smart move.

All while hoarding cash and waiting for the market to turn around.

But here's what smart investors do at times like this.

Smart investors have at least a 5-10 year (and depending on your age, more like a 20-30 year) time horizon in front of them.

There are 2 massive benefits to this.

One is that the longer your time horizon, the more compounding is going to benefit you.

After all, a stock that goes up an average of 15% per year for 20 years makes you 19x your money.

20% per year for 20 years makes you 39X your money.

Push that to 25% per year and you get 86X your money!

The other end of that though is that it's important to have a long term view so that you can endure a decline if and when it comes.

If you're someone who needs to make a return within the next year regardless of what happens... then you're at the mercy of the market.

Hoping it doesn't decline 20% over the next year, and even stay there for a couple of years, because that can happen.

That's why having a time horizon is so incredibly important.

It's not just the compounding you get, it's the mental fortitude and ability to put up with and recover from declines when they occur.

Because here's the thing.

If you actually study history, these market declines are totally normal.

That's why it's so important to understand that this is the time to stay calm.

And if you want to make some extra income... regardless of what the market is doing...

Then check out our latest book REIT Investing for Beginners

​You can get your copy here​

Oliver

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