Quote:
Originally Posted by retiredguy123
I never try to time the stock market because I admit that I don't understand it. I have always been a buy and hold investor and have done well. They say that the stock market responds to predictions of future events. If that is so, then why is the market going down now when everything that has happened with interest rates and the economy was totally predictable at least 6 months ago? Also, they say that owning stock means that you actually own part of a profitable company. So, if I own shares in McDonald's, that sells millions of hamburgers every day at a profit, why does the stock value decline when other stocks decline in a single day? Just because some stocks go down, should have no effect on the number of hamburgers that McDonald's sells that day, and the value of the company. Can one of you stock market timers explain these things?
|
" Can one of you stock market timers explain these things?"
I always find it interesting at how many claim (while being anonymous) how well they've done - 'timing' the market(s). Sorry, if I don't believe 90% of ya.
While the last month has been a bit rough, I personally will continue with my (relatively conservative) investment allocations and will sleep comfortably knowing that I don't need to sell/draw down anything, as I am fortunate to have defined benefit pensions for my retirement income. Recognizing that not everyone is as lucky, I would still caution against panicking and selling at such a low point, since history shows that doing so puts you at risk of missing out on some significant gains in a very short period - 'when' (not 'if') the markets rebound.
Good luck to all.