I wanted to follow up on one of our commenters‘ points about keeping a cool head in the midst of a financial crisis.
While loosing 20 to 30 percent overnight is nothing to sneeze at, it also isn’t the end of the world.
Keep in mind that if you have money in the stock market, you are likely better off than most other people who are entirely out of the market – as you’ve been able to put something away.
My thoughts would be to stay put unless you think the company you have stock in is insolvent. Otherwise it is best to ride out the storm and wait for recovery.
This of course may be harder for the boomer generation who are likely dreaming of retiring soon, but for those of us in our thirties and forties who are in a good enough position to put something into the stock market in the first place, we are likely to ride this out just fine.
It does feel good to have secured stable employment and know that I won’t be on the job market any time soon. That means that we’ll have plenty of cash coming in to buy up stuff at low, low prices.
Stay tuned as we ride the wave.
Miel
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