Lessons from past market plunges - and my single biggest regret in reacting to them

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

Some advice for investors seeking direction during the turbulence

This translation has been automatically generated and has not been verified for accuracy.You learn a few things after witnessing multiple stock market crashes, a global financial crisis and too many corrections to count.

Do not expect instant validation of your nibbling away at falling markets. It could take a year or years.The problem with selling in a panic and sitting in cash is that you have only solved one problem. You’ve halted your losses, but not positioned yourself to benefit when stocks start rising again. You might think you’re protecting your portfolio by getting out. But you could be doing long-term harm by missing out on gains ahead. Cash in your brokerage account probably earns you nothing, and most of the easily accessible investment account parking spots for cash get you a little more than 2 per cent at best. Inflation, by the way, hit 2.4 per cent in January.

Professional money managers live in a different world than individual investors. They’re constantly accountable for their work and thus have to be more reactive to market events. If they buy into a falling market that plunges further, they have to wear it. So expect to hear a lot of chatter about how it’s not yet time to buy.By the time the pros are telling you to buy, they will have already snapped up the bargains they were eyeing.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

globeinvestor Not much Chatter about Toronto realestate this week...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coronavirus crash: Economists try to make sense of dramatic stock market plungeThe Dow plunged 1,191 points, 4.4 per cent, on Thursday, marking the worst one-day drop in the index’s history. Economists say those numbers are troubling, but past health crises have been followed by rapid market recoveries Imagine New York City under quarantine. Can't? The algorithm can. Hence the market drop. It's just getting ready Not rocket science - Trump made a speech So where did this virus come from again? Muddy the waters with a few different sources (bat, snake, pangolin, rat etc).. probably came from a lab.
Source: CTVNews - 🏆 1. / 99 Read more »

Q&A: U.S. stocks just ‘corrected,’ a regular but still scary eventA look at what history shows about past corrections, and what market watchers are expecting going forward globeinvestor LOL, the indexes aren't 'out of the woods' by any stretch, yet...
Source: globeandmail - 🏆 5. / 92 Read more »