There might be a temptation to sell or move around some stocks or retirement funds because they’ve been moving down during March, but one expert says it could end up being like “Buy High, Sell Low.”
Money Man Pat Shinn says there have been a number of changes in markets, especially in oil, gas and related industries, but “when we look at the outlook for future profits for US corporations, there has been no change at all since this thing started.
“So the fundamentals are fine. When this thing is over the market will start coming back up to where it was.”
No two markets are ever the same, but there are often similarities among market situations, though.
“In my opinion, the closest things this market resembles is the Cuban Missile Crisis back in 1962 and the 1991 war with Iraq, ‘Desert Storm,’ and in both cases you got advance warning that this is coming.and markets were selling off, selling off, selling off.
“And so in both cases, when you sold off and then got back in the markets later when the uncertainty was over, it cost you a lot of money!”
One of the basic lessons of investing is to go for a long-term strategy, and the KTRH Houston stock market analyst points out that if you spend time each day watching your stocks’ performance, it becomes tempting to want to make quick changes in your portfolio just because of movements in your stock values.
Shinn says it’s okay to keep daily track of your holdings, but the more often you look the more likely it’ll make you what he calls a “much, much shorter-term thinker.”
There was a time 30 years ago when you had to go to newspapers to see how stocks were doing, and even then the stock listings were not up-to-the-minute like you’ll see every day on your smart phone.
“So when it comes to checking your account every day, we have a phrase.
“It is okay to look, just don’t stare.”