Expect stock prices to go down
"If you have trouble imagining a 20 percent loss in the stock market, you shouldn't be in stocks." —John C. Bogle
Stock prices go up; stock prices go down. Over time, the direction is mostly up.
"Investors that can't imagine life with a temporary reduction in the value of their portfolio are typically not suited for a large allocation to equities. These investors are tempted to get out of stocks when markets are down, but recoveries come unannounced and are often just as swift and dramatic as the prior correction," says CFP professional Peter Lazaroff, CFA, portfolio manager at Acropolis Investment Management in St. Louis.