Should You Be Panicking Over the Market?

Should You Be Panicking Over the Market?

Posted On July 23, 2019 3:05 pm

Don’t Panic…Yet

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 thatContinue reading at StockNews.com

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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