Year-to-date, stocks are down almost 20%. And bonds, surprisingly, have lost money too—down about 10%. At times like this—when the headlines are almost all negative—the standard advice is to avoid panicking, to stay focused on the long term. I agree with that, and indeed the data are clear: [...]
Where to next?
This week I ran across a statistic so surprising it was hard to believe: During the recent market downturn, according to Fidelity Investments, approximately 15% of investors sold all of their stock holdings. And among investors 65 and older, nearly a third sold all their stock market investments. It [...]
Bear Market Field Guide, Part X
Investors, it is often said, are driven by fear and greed. At a time like this, I’d add a third item to that list: regret. The past 18 months have been enough of a roller coaster to give even the most even-keeled investor a stomach ache and have created ample opportunity for regret. Since the fall [...]
Bear Market Field Guide, Part IX
Earlier this week, I came across a magazine article from the B.C. era—before coronavirus. The article, which appeared in a recent issue of a popular personal finance magazine, described a certain type of bond investment. The write-up was well researched and balanced, including a discussion of the [...]
Bear Market Field Guide, Part VIII
I have a big problem with a small word. But before I get to that, I’ll start with a little bit of history. In his book The Success Equation, Michael Mauboussin tells this story: Back in the 1970s, a Spanish man won the country’s biggest national lottery, called El Gordo—the Big One. Awarded [...]