To be invested or not invested, that is the question. Because the saddest part of seeing prices go down is getting out of the market and staying out of the market while they rebound and set new highs.
This is your plight, investor, if you do not know thyself. You believe you know thyself when prices are rising, but realize you were wrong when they fall to unimaginable depths. And it’s not the selling to help you sleep well at night that hurts. It’s staying in bed while the world recovers.
When prices go down and stay down, it’s because finding buyers is as rare as hens’ teeth. Yes, you read about those who bought stocks at the bottom, but the population of buyers is like the population of a ghost town.
And when you’re on a fixed income or in retirement, being “brave” is the last thing on your mind. When buyers finally come around, it’s after the low-hanging fruit has already been picked. It’s why the phrase “be invested, stay invested” is as much about you as it is the markets.
Knowing thyself and thy spouse helps you to stay invested. Although selling may be the right thing to do for your relationship, it may not be the right thing for your money. Avoiding a potential conflict at the start may be better for both of you.
Action Line: When you’re ready to talk, let’s talk. Email me at ejsmith@yoursurvivalguy.com.
