It’s been more than six years since Covid first entered our vocabulary. It goes without saying that investors have experienced a lot, and for better or worse, recent market events provide some useful lessons. The first has to do with the nature of the stock market. What drives stock prices? Open a [...]
When to sell
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 [...]
