Oct 13th, 2008
The Market Puts on the Big Hurt, but Some Folks Hurt Themselves More
Just a year after hitting its all time high, the stock market is about 40% off of that high, to levels not seen since 2003. It’s a tough time for many, and if you’re close to retirement and your asset allocation was out of whack, you probably hurt more than others. Looking at current stock market levels definitely hurts.
But just because the hurt happens, don’t make it hurt more.
Pulling out of the market. Selling all your funds and moving 100% into cash. Discontinuing contributions to your retirement savings plan. All of these are ways to ensure that the market isn’t going to just hurt now, it’s going to continue to hurt for a long time to come.
You don’t have to believe me. Warren Buffett is buying stocks. John Bogle is telling investors to get back to the basics of investing. These are two of the most successful finance gurus of our time. Just do the smart thing and follow the plan you made; in the end, you’ll be better off, and you won’t hurt yourself any more than the markets have already hurt you!
This was a great post! I really enjoyed what you had to say!
I wanted to offer you a link to another blogger who is
doing great work. His work is about emotions, and how it
affects our financial decisions, and how the best approach
to stability in today’s market is to resist letting these
emotions control our buying/selling habits. It is really
fascinating work. His name is Brent Kessel, and you can view
his blog at http://brentkessel.com/wordpress/.
Nice post. Small but very good style used to write. Appreciated.
Sherin
http://investinternals.blogspot.com