Remember a few months ago when the stock market took a dive and I stated I’d lost a lot of money in my 401(k)? I said my strategy then was to stay put and I’m glad I did. I have since made up that loss and then some without touching a thing. That’s probably not always the best move, but I think most of the time it’s best to stay put a little while and not react to the market instantly.
Recently a senior investor friend told me how he’d talked a client out of pulling out of some funds when the market went down. She came back to him just last week thanking him because of the significant gains she’s now experiencing. I’m not predicting the market is forever on the rise because times will get worse, but they will also get better.
I know each investment needs to be treated differently based on a number of criteria, including your philosophy, but I initially stick with doing nothing at all in the beginning of downturns. Someone like Jay or Derek could probably shed good light on this topic.
I thought gambling was against our religion.
That must be Macarthur doctrine, which is probably pretty good stuff.
Its only gambling if you lose…