I don’t have all the answers, and I’m not one for giving individual advice, but if there’s one piece of general advice that I would give every working stiff with a diversified 401k-like plan, it’s this:
If you didn’t foresee this bear market and got out of the stock market near it’s peak, for heaven’s sake, DON’T panic and get out now. It’s natural for bear markets to happen eventually, but just like bull markets, they don’t last forever. This too shall pass.
It ALWAYS seems like doomsday when these things occur, but as recent history has shown, these economic problems always get resolved. Don’t buy into all the news-media hype and start to panic about your unrealized losses, remain cool-headed and ride out this storm. If you get out of the markets now you’ll just lock in your losses, and become your own worst enemy.
Fear is found nowhere but in your mind, and can either be instructive or destructive. Face your fears head-on and don’t let them get the best of you. Hang in there and a few years from now you’ll be proud of your stoicism.
Comments 1
A little advice from our good friends at The Vanguard Group.
Diversification has blunted the impact of Wall Street woes.
Posted 04 Oct 2008 at 10:24 am ¶Post a Comment