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Even a profound market meltdown should not cause you to change your strategy unless you need your money really soon. Look at the meltdown in 2000. If you were
by claydavisss 8y ago
Even a profound market meltdown should not cause you to change your strategy unless you need your money really soon.
Look at the meltdown in 2000. If you were thirty years old and sold, you might have patted yourself on the back for a while...but assuming you are reserving most of this money for retirement when you are over sixty, you would have to either time a re-entry in the market, or give up 3x gains since.
The only people who should be changing course due to a correction are people who need their money soon.
If you are in your thirties now, the DJIA will probably be 50k+ by time you retire. Does it really matter if it goes to 15k first?
- ironjunkie 8y agoIt all comes down if you believe in timing the market. I know that the best advice is to not time the market, and simply invest in the long term, riding through the market depressions. That being said, a couple of my friends managed to successfully time the market for 2000 and 2008. Basically, they remove their money more or less 8-10 years after the end of the last depression, and add it back in as soon as it looks like it is going to go up again. I believe it is more luck than skills though.
- deleted 8y ago[deleted]