Unless you sold just prior to the recent downturn you locked in your loss and have already missed some of the recovery.
Anyone that gets nervous and feels they must sell during a market panic obviously did not understand their risk tolerance. Knowing your market risk tolerance and establishing the appropriate equity percentage is the best way to position yourself to be able to stay the course and still sleep well during market gyrations.
The market goes up and down but over time it has always been an upwards direction. This time it will do the same. Question is how long will it take? If you cannot accurately predict when to time the market you will likely do worse than staying the course. There is much data out there to support this.
|