Investing is emotional because we're human, and our feelings can pull us in all kinds of directions in response to what the markets are doing. That's tricky because sometimes the best thing to do is the opposite of what our instincts are telling us.
When the markets are doing great, it feels great. We feel optimism and excitement. But, as we were reminded last year, the markets will turn at some point. It's a normal and expected part of the cycle.
And when the markets are down, we might feel anxious—or worse. Because we're human. In these moments, our instincts can tell us to flee to the presumed safety of cash, even though it might not be the best decision for our long-term plans.
When markets feel chaotic and we're only hearing bad news, it's easy to miss this fact: The markets' lowest points are the moments that hold the most opportunity for investors. Like the saying goes, "The night is always darkest before the dawn."
Of course, you never know when the good times will return, or how long they'll last. That's why—as this video shows—persistence is the key. Stay the course, no matter what anyone else is doing.
