Sometimes The Better Movement Is Standing Still

By Author: Jennifer McClelland
Total Articles: 4717
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As we have covered previously, we are about to enter a solid recovery. Many people have lost lots of wealth in the downturn in all sorts of investments and are asking what they should do from here. If you have not already unloaded those bottomed out stocks, hold on to them. If your retirement capital is in any stock associated format, do not even touch it. Stay put and travel the tide back up. Essentially, yes, this is a form of timing the economy, but sometimes you just have to. You rode the Dow down from 12000 points to 6500 points. Why not ride it back up with the same stocks. Most of the stocks you hold, if the company has not gone bankrupt, will go back to their first status.

If you have invested in economic organizations that have not previously filed for insolvency, you are in good shape to ride the recovery tide back up to affluence. If you have not previously diversified your 401k to lessen losses, do not worry now, Ride it back up where it was and then make plans from there. With the market at such a low and stocks that were on one occasion in the double digit dollar figures a share currently trading for pennies, ...
... this is the time when everybody and their mom will begin to buy.

Of course, read that Wall Street Journal copy that was on your front terrace this morning. Check your IRAs, your 401k plan, and the stocks you are at this time holding. The only thing you need to remember is that what you are reading is the lowest your investment will go. As mentioned in previous articles, a growing tide lifts all boats, and your boat will definitely rise with the looming tide. If you miss a major value incline now, it could be very distressing. Why lose so much value now and sell so low when you can just recover the value.

Of course a downturn is hard. This only happens every twenty years just like any cycle you will find in any business or any part of life. As complicated as it may be to hang on, this is the most horrible time to sell because were at the bottom. Some analysts, who this author agrees with, in fact call this an false bottom. The floor should not have been lower than a 7000 point Dow Jones average.

Flaring emotions and investors furious with adrenaline and irritation actually brought the economy to an artificially low bottom. Selling in an false bottom is more unwise than words can articulate. Resist the urge to sell. In fact, if anything, try to buy more. It will lift the overall financial system, doing good for all industries you have your fingers in.
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