By Craig Erwin, Ph.D.
Unless you’re on Mars, you know the stock market has been falling like a rock. But the worst thing to do is panic; it only makes things worse. What should you do? Ignore the news, and your friends. Don’t sell anything, especially stocks! Hold on tight! If you feel compelled to do something, buy more stock, but don’t sell anything.
Stocks are obviously much cheaper now than they were a short time ago, so it’s time to buy, not sell. If you sell, you stand to lose a lot of money and you will lock in those losses forever. But if you buy now, you will get sale prices, some real bargains; some stocks may be cheaper now than they were years ago. If you must do something, buy more stock, but, whatever you do, don’t sell! It might seem like selling is the right thing to do to save yourself from more losses, but selling now will cost you dearly. Remember, the way to build wealth is to buy and HOLD!
Are you tempted to sell something in your investment portfolio? Are you able to resist the temptation to sell stock? Do you have the courage to buy more stock?
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