Sometimes the Best Movement is Standing Still

As we have covered before, we are about to enter a solid recovery. Many people have lost lots of money in the recession in all sorts of investments and are wondering what they should do from here. If you have not already unloaded those bottomed out stocks, hold on to them. If your retirement money is in any stock related format, do not even touch it. Stay put and ride the tide back up. Essentially, yes, this is a form of timing the market, 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 original status.

If you have invested in financial organizations that have not already filed for bankruptcy, you are in good shape to ride the recovery tide back up to prosperity. If you have not already diversified your 401k to minimize losses, do not bother 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 once in the double digit dollar figures per share currently trading for pennies, this is the time when everyone and their mother will begin to buy.

Sure, read that Wall Street Journal issue that was on your front porch this morning. Check your IRAs, your 401k plan, and the stocks you are currently 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 rising tide lifts all boats,” and your ‘boat’ will surely rise with the oncoming tide. If you miss a major value incline now, it could be very devastating. Why lose so much value now and sell so low when you can just regain the value.

Of course a recession is difficult. This only happens every twenty years, just like any cycle you will find in any industry or any part of life. As difficult as it may be to hang on, this is the worst time to sell because we’re at the bottom. Some analysts, who this author agrees with, actually call this an artificial bottom. The bottom should not have been lower than a 7000 point Dow Jones average.

Flaring emotions and investors raging with adrenaline and anger actually brought the economy to an artificially low bottom. Selling in an artificial bottom is more unwise than words can express. Resist the urge to sell. In fact, if anything, try to buy more. It will raise the overall economy, doing good for all industries you have your fingers in.

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