05/01/2025
🤷♂️ I often get asked, “What’s the harm in selling everything and waiting for things to get better?”
☝️First, going to cash is a major psychological statement. You no longer believe in your long-term plan and have moved your focus very short-term.
✌️Second, some of the most frustrated people I have met are those who have sold and gone to cash. They are waiting for the perfect moment to reenter the market. They end up torturing themselves through paralysis by analysis, trying to time the re-entry.
📉 The market usually leads the news in and out of a drop, correction, or recession. You usually see bad news continue to come out, and the market jumps higher. This leaves most investors confused and in disbelief that the recovery is real.
💯 I have never, in my entire career, had someone completely sell and then buy back in at a lower price. Seeing is believing, and until they see good news, they don’t believe things are better.
💰 No one can time the market, as you have to be right twice(sell and buy). The short but very painful period when investments are going down is the price of admission to earning a higher return than a guaranteed investment.
🤯 Anyone can own investments when things are going up. True investors can adhere to their plan through scary, painful periods so they can enjoy the good years that follow.
How do you react to news headlines and market volatility?
