Does the Downturn Make You Sick? An Ode to My Dad
[Link: www.foxbusiness.com...]
… anyone who is upset, who is worried sick or can’t sleep at night because they can’t bear to see their net worth decline so much, should take another look at how much risk they’re carrying. At some point, evaluate what you own and get more conservative. Because even owning cash and Treasurys isn’t as terrible a strategy as buying at the peaks and selling at the lows, which is what anyone who’s gotten out of the stock market in recent weeks has probably done.
This isn’t just a “right now” lesson. In fact, the most important time to remember this will be years down the road, during the next boom. Because there will be a next boom — there always is — and along with it will come the people at parties, the cab drivers and the twentysomething wunderkinds who will tell you how their investment made a 30% return last year, or doubled, or tripled.
As tempting as it will be to follow them, everyone who is in agony right now should remember this agony, and nod and smile as the risk-takers talk, and stay invested conservatively. Peace of mind is worth a lot.
Hey, Dad — nice job. Thanks.
Frank says: