By: Steve Smith
One of the best-known quotes on investing comes from Jesse Livemore, who said:
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”
He died broke by suicide, which by no means should diminish the essential truth in his message; which was to be patient, and stay the course And in the age of passive/index fund investing, is even more applicable.
For the most part, in the past few years, it has been the “most hated rally ever.” But, however precarious, the seemingly best advice for longer-term investors is to simply stand pat.
As this article in Bloomberg highlights, investors have been inundated with the message that a ‘big comeuppance is coming’ and one should dump stocks and hide out in ‘safe’ assets such as bonds and gold.
And even stocks hit all-time highs — money flow data confirms that people are following this not-so-sage advice. For the year to date, some $150 billion has been pulled from mutual and ETF funds while over $275billon has been put into bond funds
The painful irony is that… Continue reading at StockNews.com