Many of you are probably terrified about your investments right now. The market is dropping, dropping, dropping. Your 401k and other investments are shrinking. What should you do?
I recommend staying put. If you are investing, you are far ahead of most Americans, as we currently have a net negative savings rate. Smart investors put their money in for the long term. If you are a long term investor, I would stick it out. It might be a few years, but things will inevitably recover. They always have.
If anything, I think this could be a great time to buy. I like to look at Warren Buffet as a stock market litmus test. Buffet just made a few big buys. He knows how it works. Buy low. Right now, stocks are low. Buy them!
Remember that I am not a certified financial adviser. I am not responsible for your decisions. I will tell you what I am doing right now. I am buying low. I will sell high later.
Image by MyEyeSees.
