Do you still have the 'buy and hold' mentality??
March 2nd, 2009In the past 52 weeks, here is how much the following stocks have declined:
Sirius: -96.41%
Apple: -54%
Citigroup: -95.47%
AT&T: -43%
GE: -80%
ExxonMobil: -32%
GM: -91.5%
Pfizer: -48%
Ebay: -69.26%
Yamana Gold: -60.72%
Microsoft: -50.63%
John Deere: -74%
Monsanto: -51%
Altria: -80%
Do you still think it’s a good idea to invest in your 401k right now? Do you still believe in the flawed concept of “buy and hold“? Use your head, not your heart. Just because you are invested does not guarantee that your investments will go up. Ever. It’s your money. You have no business investing in anything if you are going to just have blind faith and just let your money sit while you make no decisions. I’ve been saying this for a long time now. Buy and hold is not a winning strategy. Buy and hold is ignorant and may cost you dearly.
If you want to invest but are too scared about making the wrong decisions, you have options:
- Hire a Registered Investment Advisor (RIA) – a non-commissioned professional that will personally manage your investments
- Call your 401k or investment company and discuss making changes. Fidelity, Schwab, Ameritrade, etc… all have investment professionals that are just a phone call away.
- Get involved in your finances. Learn, read, ask questions.
- Don’t be afraid to make changes in your strategy at least every quarter. You must have some type of involvement. After all, it’s your money. Don’t play the “I don’t know anything about investing” card.
For your additional reading enjoyment:
Rules Are There For A Reason 2/25/2009
Sell your stocks and put your money in the bank! 9/17/2008
The Short Sale Uptick Rule Has Been Abolished By The SEC – What This Means to YOU! 8/10/2007
Tax-Deferred Investments 2/25/2007
Investing Basics 8/26/2005
The Retirement Craze 7/11/2005