I love the doom and groomers, they’re always right — markets eventually crash or go down. However over time, the DOW has always trended UP, with a bunch of dips along the way. I started in the 70s when it was in the 700s. Haven’t lost a penny at any downturn because I never sold in a panic.
A correction here is good news for long term investors.
Nice handle...
Pardon my lack of stock market knowledge, but wouldn’t it be better to sell and then buy the same stocks again when the prices have hit the bottom?
“never sold in a panic”
I wish I could say the same. Nobody taught me to stay the course in stormy weather. I bailed out twice and got back in WAY too late. My retirement portfolio is probably half or 60% of what it would have been if I had not panicked.
I finally hired a financial advisor who set me straight. He showed me some great analysis of how being just a little bit late on market timing (both at top and bottom) really ruins your long-term returns.
Up and down. You probably can’t time the market. Usually less than 3 years from fall to recovery to a similar point. As an investment you just wait, as income producing assets I guess you diversify or something. Not sure I know the secret sauce. I deal with it through an old annuity but today I suppose bonds or dividends maybe.
Eventually it will fall. It always does for one reason or another. This time it will fall because the reason it went up has gone away, Donald J. Trump. The policies and plans he had inspired a hopeful outlook from lower taxes to a leveled trade landscape and even trade protections. Plugs is taking an axe and a wrecking bar to all that Trump accomplished. The fed can’t keep rates low forever either. They only have one way to go.
I”m afraid this will not be a normal dip when plugs policies and Trump’s demise catch up with profits and they will. We have had the upward correction from the malaise of the obama era and even bush 2 and now we will see the downward one to swing around the mean of 6 to 8% log range returns.
I don’t want to see the market fall but I do want to see the insanity of the realestate market and some others meet their Waterloo. Markets like this only do a certain few well. They inspire tax collectors to make a temporary condition permanent pain. Ditto with insurance and other costs of ownership.
I probably won’t sell much as before but instead do some balancing as usual. Being fully invested and retired I don’t have money to buy the dips and so stand pat.
We really don’t have choice about how things are but only how we respond to them.
Anyone over 55 or 60 might want to consider other alternatives besides the stock market such as moving to CASH, precious metals, ammo, property, etc..
I think EVERY sector will be negatively impacted due to Biden's SABOTAGE of America, the question becomes "what sector will be LEAST affected?"
CASH will be worth LESS due to reduced BUYING POWER.. The market will likely also be depressed.. What to do?
The OLDER FREEPERS need to plan accordingly.
Excellent Post!
Words of wisdom my Father taught me decades ago. 👍🍻
Amen brother amen
The problem becomes real if like us, you are old.
The market will recover...... it’s America.
The question for an old guy is will it be timely?
The big problem is that you can’t just keep your money in a mattress… unless you don’t have much.