Is now a good time to panic?
You're not the only one wondering
Lots of questions this past week or so as the stock market is ricocheting around. Everyone is asking some version of the same thing — should I hold on or is now the time to take what’s left of my savings and bail out of the market?
I first answered this question just after the election and you can read that here:
My answer hasn’t changed:
I don’t know, but no one else does either.
When you time the market, you need to be right twice — first, when you decide to get out and later, when you decide to get back in. Good luck with that.
You have to put your money somewhere. There are only four practical options for your life savings — stocks, bonds, cash, and some version of real estate. Historically, the three other choices have been safer (i.e., less of a rollercoaster ride) than stocks, but the long-term returns have been substantially lower. For the past 100 years, it’s been a mistake to (permanently) opt out of the US stock market. Maybe this time is different?
I’d try to sit tight and focus your nervous energy elsewhere. For example, organize a boycott of Tesla cars. It just might help us emerge from this lunacy.
Thanks for level headedness !!
such a hard time for sure. I have wondered if i should move some of my 401K to another country. Don't know anything about doing that, but it does cross my mind that i might need an escape plan.