As a preview
This is the post that helped inspire me to write about investment strategies:
I have no idea what’s going on with any of my equity investments, because that is not short term money that I need to keep my eye on.
If you look you will get upset, and you will be tempted to do something stupid. I can’t guarantee that the market won’t drop further and you won’t regret having held on. But as a general rule, selling into a massive liquidity crisis is a pretty bad idea. Selling in a panic because your assets just dropped 30% is almost certainly a bad idea.
Since that was posted the Dow has dropped from 9447 to 8046, a loss of almost 15%. So if someone followed her advice and didn’t sell in early October, they’re even farther down. And since it looks like an economic revival is doubtful at the moment, the losses will probably just get even worse.
Completely hands-off management is never the answer.