The S&P/ASX 200 Index (ASX: XJO) has fallen 22.10% lower in 2020 and could be falling further.
Many investors would be worried about what the market's doing right now. That's completely understandable given the uncertainty we're seeing in this bear market.
But amidst all the coronavirus-induced panic, I'm reasonably stress-free. Here's why I'm not worried about the ASX 200 falling further in 2020.
The ASX 200 could fall lower
There's no point pretending the ASX 200 couldn't be falling further in 2020. No one has a crystal ball and market timing is very difficult.
This global pandemic is only really just beginning. There's evidence that COVID-19 is starting to peak in Italy and Spain. But we don't really know how this will impact developing nations, for example.
That means that the global economy could be in hibernation for a while. Investors are skittish right now and we're seeing big moves in ASX 200 shares from day to day.
I wouldn't be surprised to see the ASX 200 falling further this year, but there's no need to panic.
I've prepared my finances for a downturn
One big reason I'm not worried is financial security. I've been fortunate enough to save some money and put it aside for a rainy day. This could be a tropical cycle kind of day if things get really bad.
But once you have reduced your financial stress, you're in a good position. Even if the ASX 200 is falling further in 2020, I know I've got a solid emergency fund.
If you're not in the same position, there is still time to fix your finances in 2020.
I'm investing for my long-term future
This one here is a biggy. I'm investing my money for 10, 20, 30 years into the future. That means that what happens today is just a blip on the radar.
Even if we see the ASX 200 falling further in 2020, my investments will be OK. I've got a diversified portfolio of ASX 200 shares which will see me through.
If anything, watching your portfolio or super balance day to day will just increase anxiety. If you've got a solid investment strategy, stick to it in the bad times.
COVID-19 might cause the ASX 200 to fall further this year, but there's no point in panic selling at the bottom. Just sit back, relax and wait until we see the economic boom on the other side.
