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Chuck Jaffe: Investors, Remember How You Felt Five Years Ago
I remember getting a call from my wife, while I was on business trip. She informed me that some relatives had decided to sell all their stocks/equity funds...moved money to fixed income. They were afraid that they might lose everything. She wondered whether we should move to fixed income as well.
Investors in stocks like BAC, GE, AIG, GM, Wachovia, etc did lose just about everything! Some on paper. Some permanently.
Those were scary times.
Most of our savings was locked-up in 401K/IRAs/Roll-overs, which we could not touch for years anyway. So, we stuck in there...just kept contributing max possible.
Back then, I was an ardent believer in buy-and-hold.
Ha!
Irony or luck or both.
If it happened again today, I'm sure we would not stay fully invested like we did, but not sure in long run whether we would make out any better.
Comments
Investors in stocks like BAC, GE, AIG, GM, Wachovia, etc did lose just about everything! Some on paper. Some permanently.
Those were scary times.
Most of our savings was locked-up in 401K/IRAs/Roll-overs, which we could not touch for years anyway. So, we stuck in there...just kept contributing max possible.
Back then, I was an ardent believer in buy-and-hold.
Ha!
Irony or luck or both.
If it happened again today, I'm sure we would not stay fully invested like we did, but not sure in long run whether we would make out any better.
When it happens again...