Market Forecast: Fluctuation

I find it hard to fathom how fickle people are with their investments. Are there really THAT many people out day trading? If you have your money invested, just leave it alone, you idiots! You haven’t lost anything until you actually sell your stocks. It’s all just on paper. If you’re like me and you have 40 years until retirement, you are nuts if you chose to just sell off your investments at a loss.

Just because the market went up the last 10 days doesn’t mean it will go up on day 11. Just because it went down 10 straight days doesn’t mean it will go down on day 11. The upward trend the past 100 years has been consistent, and has consistently had fluctuations – some large and some small. If you just left your money alone, you’d have earned around 12%. If you take it out after you lose 40%, you have lost 40%. If you just leave it in there and let it recover, you’re not out anything.

Now, if you’re about to retire, by all means, cash out. But that isn’t most of you. Not only is it dumb to take a big loss on your investments, it also snowballs the crashing market. If everyone starts selling off, then there’s tons of stock available that no one wants. That means one thing – everything loses value.

The best thing you can do to improve your position is to hold on for dear life, stop looking at your 401k balance online every day, and just STOP doing anything. You’re only making it worse by trying to meddle with something you don’t even remotely understand. Right now, even Warren Buffet has lost like 100 billion. But he’s not panicking. He’s BUYING. He knows it’s only a loss if he sells it at a loss.

So stop making things worse. Put down your statement, take a chill pill, and focus your energy on working hard so when the job market gets worse, you won’t be the first person laid off. Shoot – if you can hang onto your job, a recession will be like a big sale! Plasma screens for $50!

  1 comment for “Market Forecast: Fluctuation

  1. YMM
    December 1, 2008 at 7:22 pm

    Here, here!!!

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