Quote:
Originally Posted by Tom52
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.
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I went to cash last week, which is what precipitated my thought on starting a thread about it now. As I mentioned, I hung on when it went all the way down into the 6,000's and was glad I did as I watched it steadily climb out of the low's of the Great Recession. Ironically though, given that when I started this thread the DOW was almost unmoved at about 24,100 and it closed about 400 points lower after I started this thread, so maybe there's some secret Street followers of this site? lol
I also forgot to mention in my initial post that even before Covid-19 happened, I thought the market was way overvalued and was due for a major correction sometime this year anyway. While we'll just have to wait and see what happens in the coming months, it's comforting to know that even if I miss out on a huge run-up (highly unlikely IMHO) - I'm not going to be checking every day, nor be hurt if the bottom does fall out.