4 ms·
the difference is that boomers have lived through more than one market cycle and we know an inevitable "correction/crash" is coming. The wise will take action
by jackhack 6y ago
the difference is that boomers have lived through more than one market cycle and we know an inevitable "correction/crash" is coming. The wise will take action in advance (e.g. move to cash positions) to lock in gains, then repurchase at what feels like the worst point of doom & gloom. A 50% loss needs a 100% gain to recover... Plus inflation. Factor in opportunity cost and it might be closer to 120%.
The first and last lesson in investing is DON'T LOSE MONEY.
Sadly, many have to learn firsthand that markets don't grow to the sky forever.
- icedchai 6y agoAlso, don't put all your eggs in one basket. It sounds cliche, but diversification is important. When the entire market crashes and you're down 30%, it will come back... in time. When your crazy YOLO stock crashes 90%, it may be done for good.