During these trying times, it is of utmost importance to stay rational with our investment decisions. A panic move could prove to be catastrophic later. I am nervous, as I think most of you are. The Dow seems to drop 2% and we drop 5%. One would figure that the best stocks would hold up better, but it doesn’t seem like that’s the case. In these trying times, it’s more important than ever to let history be our guide.
This is the third time I have managed stock portfolios through a market crash. One thing I know is that the best stocks always get back to their old highs, then go even higher. The move back to even is often so swift that the market gives you little or no chance to get back in. If I sell now, I would have to buy back maybe 30% higher than these levels. Everybody wishes they were in cash. Everybody would like to get back in at the turn up, but by then the good news is out, and the stocks will be higher.
