When Stocks Go On Sale, Please Don’t Bail!

These have been two of the most volatile weeks in history for those who own stock. If days like these leave you fearful, you are not alone…no matter how great of a stock picker you may be, no matter how high your conviction might be.

Can you keep from selling your holdings and stay long?

I see many posts on Twitter about people using this time to reallocate their holdings. To each his own…but I, for one, am not sophisticated enough to do that. Here’s why: I have no goddamned idea if it’s the right thing to do!

In 2001-02, the overwhelming majority of investors thought that eBay would ultimately be a better investment than Amazon. Again…how did they know that? The reality is, my friends…it is a guess. An educated guess, but a guess nonetheless.

I cannot tell you what the market will do in the next month, or two, or even six. However, in five to ten years, it will surely be higher.

Watching your account lose value day after day is the price of admission to the greatest wealth creation vehicle that exists.

So if you have some cash on the side, put that baby to work! You won’t pick the bottom, I can guarantee you this. However, in a year, you will be thankful you did it.

Times like this can be scary for new investors…but there is nothing to fear. Use these sell-offs to initiate or add to great companies whose price is on sale.

When people evaluate their losers, they tend to only focus on stocks they bought that lost value. They don’t always factor in the stock they sold in a panic that went up 300% after they sold it. That is a bigger loss than the stock you bought that’s down 50%.


My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)


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