Getting Out, Sleeping Less

Dave Says  (getting out but sleeping less)

 Dear Dave,

I cashed out my portfolio several months ago, because I just couldn’t sleep at night with all the market swings that were happening. What do I do now that I have the cash?

Max

Dear Max,

That’s a tough one. Personally, I wouldn’t have cashed out. The good thing is that you cashed out high and now you can buy low. The bad thing is the market may go even lower after you jump back in the mix!

But your biggest problem isn’t your sleeping habits. It sounds to me like you got caught up in the doomsday talk and forgot to think about things from a long-term perspective.

I recommend that you go back to what I’ve been teaching for years. When it comes to investing, take the long road.  Don’t worry about what’s happening today. Don’t worry about what may happen next week, next month or even six months from now. An investment is something you leave alone at least for five years.

If you look back over the history of the stock market, 97 percent of the five-year periods have made money, and ALL of the 10-year periods have made money.

We’re going to be okay. The American economy will prosper in the long run!

- Dave 

                  * For more great financial advice from Dave, please visit www.davesays.org.

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