Feb 1st, 2010
In a Few Days a Lot Goes Poof (Which Worries Me Not)
The stock market had been cruising upwards at a nice clip in January month until the latter part of two weeks ago, where it gave up just about all of its gains for the month (and therefore the year). This is the kind of time when Chicken Littles start running around declaring how the stock market is about to self destruct.
Yes, it’s true, just about all of the gains in my portfolio for 2010 went poof just now. But at the same time, we’re less than four weeks into the new year and it’s not like I’m investing for four weeks–this is a many year long process. What’s interesting is despite all of the changes that have occurred over the years, the market is still the market, and doing the smart, time tested things works out: invest in quality products, keep expenses down, use whatever tax advantages you can, and hold on for years if not decades.
Three days this past week doesn’t change decades upon decades of reinforcement.
You are so right about thinking LONG TERM. So many people tuck and run due to short-term thinking. We need to think 5, 10 years not 5-10 weeks. Good point.