I’m saving for the long term - should I be worried if share prices fall?
“But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?
“Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the ‘hamburgers’ they will soon be buying.
“This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”
Post a Comment
Roy says: "Thanks for taking the time to leave a message, comment, or continue the conversation!"