Long-term view helps when market tanks

Q: Why should I stay invested in stocks if they will all go down with the market whenever it crashes? — M.B., Baton Rouge, Louisiana

A: You’re right to expect a big market drop (or “correction”) one day, as those happen every few years, on average. You needn’t exit stocks, though, unless you will need that money within the next five or 10 years. Successful investors know the value of individual stocks and the overall market will fluctuate over time, sometimes sharply. If you buy into healthy stocks at undervalued prices, eventually they should approach or exceed their intrinsic value. But that can take time, requiring patience.

Sell any stocks in which you have little faith, but think twice about exiting in anticipation of a drop, as no one knows what the market will do in the short term. You don’t want to be sitting on the sidelines for months or years, missing out on gains.

■ Earnings = Net income = Net profit = Net earnings

■ Earnings before income taxes = Income (loss) before income taxes = Earnings before provision for income taxes

■ Earnings per share = Net income per share = Net income per common share

■ Income statement = Earnings statement = Statement of operations = Profit & loss statement = Consolidated statement of income

■ Inventories = Merchandise inventories

■ Revenues = Sales = Net sales

■ Shareholder equity = Shareholders’ investment = Stockholders’ equity

■ Short-term debt = Debt payable within one year = Current portion of longterm debt = Notes payable

Learning to read financial statements takes some perseverance, but it can pay off in better investment success, as you’ll be able to spot promising or worrisome data and trends. You can learn more with “Accounting Made Simple” by Mike Piper (Simple Subjects, $15). in more than 2,700 communities via more than 30,000 employees, 340 collection operations, 201 transfer stations, 193 active landfills, 67 recycling centers, eight treatment, recovery and disposal facilities, 12 saltwater disposal wells and 69 landfill gas and renewable energy projects across 41 states and Puerto Rico. I once shared a corporate parent with AutoNation before I was spun off. My stock has advanced more than 160 percent over the past decade. Who am I?

Last week’s trivia answer

I’m the product of a 2015 megamerger between two companies that trace their roots back to the late 1800s and earlier. Today, headquartered in Pittsburgh and Chicago, I’m the world’s fifth-largest food and beverage company, with a market value recently near $100 billion. I rake in more than $26 billion annually, with the help of eight brands that generate more than $1 billion annually. I sport more than 200 brands, including Jell-O, Velveeta, Grey Poupon, Lunchables, Kool-Aid, Smart Ones, OreIda, Oscar Mayer, Planters, Classico and Maxwell House. I employ people in more than 40 nations. Who am I? (Answer: The Kraft Heinz Company)