This will be a somewhat shorter post as we have been without electricity since last Sunday. However, given the volatility seen in the market this week, many investors are wondering what to do with their stock investments. Warren Buffet's thoughts regarding the market can be summed up in one of his famous quotations:
"I will tell you how to become rich. … Be fearful when others are greedy. Be greedy when others are fearful."-- Warren Buffett
Along these same lines, in a recent interview by Jeremy Siegel, he notes:As some say, it's too late to sell. One thing that I think is also important is again, this is a bear market, but not a huge one. You know we had a 50% bear market from March of 2000 up to October of 2002. This is 20% to 25%. Some people think that it is getting worse and I don't. Listen, it's part of the 200-year history of the U.S. Stock Market. And, if you go back 200 years, has it been right to sell in the bear markets? The answer is no. You take the pain, you hold your position, and you will be rewarded in the future. (emphasis added)
This article was written by Disciplined Approach to Investing. If you enjoyed this article, please vote for it by clicking the Buzz Up! button below.
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