A lot of people talking about withdrawing their equity investment or exiting from it because the market went down, but is it a good idea?
I am a long term investor that does not mean that I am not worried about my investment. My investment from 10% positive has gone down at 25% negative in just about a month. It seems like the Virus is gonna stay a little longer unless Medical science develops a vaccine, we all humans develop an immunity against it or it just disappears somehow. The last two are just hypothetical, the first one is very much possible because we have advanced medical science all over the world and scientists are giving their blood and sweat to find a cure for this deadly virus.
Now given the time, it will take to create a vaccine that might be close to 12-18 months people thinking of withdrawing their retirement investment to avoid further losses which are actually rational thinking.
But being an investor you should know that ups and downs are part and parcel of the market. This phase is not permanent and after every dark night, we see a ray of new sunshine.
We should remind ourselves about the 2008 crisis where we have seen much more bloodbath on the market when it went below 50%. And whoever has withdrawn their investment have not recovered their losses because after a year or half market was again back towards its upward journey. You might be thinking like an investor that this time it would be different, but my friend redeeming or exiting from your portfolio causes the actual loss whereas staying invested will give you the time to recover from your loss or even giving profit to you.
How I am staying invested even after a 30% loss.
How you are staying invested, what's your strategy?
