Every bit of conventional advice says do not sell. Do not look at your 401K balance. Do not sell low and buy high.

Don’t try to time the market.

Warren Buffet says so.

Then what exactly is going on for the market to be dropping into bear market. It’s big wall street investors selling right? It’s the big shareholders frantically selling?

What the heck? Clearly they don’t read /r/personalfinance or they would know they’re being stupid and should just ignore their balance and tough it out? Is the explanation really “oh those people are just idiots. Ignore them and keep on pouring your money into this rapidly vanishing pot.”

So to me the advice does not make any sense because it doesn’t match up with what the “big boys” are doing. Are we really supposed to believe we’re smarter than big Wall Street investors? That doesn’t make any sense.

If you panicked and moved your 401K balance completely to bonds like on Feb 24th, your balance would only be down like 4% right now compared to those who stayed that are down by how much right now like close to 20%??

Even if you didn’t move until the 25th then you’d still only be down by like what 7%?

Maybe I’m just completely missing some basic fundamentals here, but isn’t losing less money better? Yes it will come back up again but not in one day. The people who went to bonds and then come back to stocks when this nightmare ends will actually be way ahead of the buy and holders who rode this out. Because the recovery growth will be exposed to a bigger balance right?

Explain why that’s wrong? Maybe I’m just dumb?

Because even if they miss the first 2-3 days of growth before they get back on, they’ll still get back in with a bigger balance and so they’ll still be ahead.

submitted by /u/Problemswithpassport

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