Why Fear is Your Friend in This Market Downturn

"The only thing we have to fear is fear itself." Franklin D. Roosevelt made this famous statement during his inauguration in March 1933. The context, though different, applies aptly to financial markets today. Anyone who has sacrificed spending their hard-earned money in favor of making an investment knows this fear. And it is a difficult one to overcome.

Unfortunately, it does not end once you make the investment. It seems that every time the market dips, your heart skips a beat. This happens because of the fears of seeing your profits decline or losing a portion of your invested money. But not all fear is bad. The fear prevailing across markets right now can be your ally.

But first, let's look at why, as an investor, fear is generally considered your enemy.

Source Fool.com