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Thread: Stock Market Nonsense

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    Default Stock Market Nonsense

    I've been putting money away into a retirement fund throughout this career for what is a very very modest sum (yeah, being in LA and then NYC screwed me way over) and finally allocated the funds into a selection of etfs and mutual funds in October of this past year. Well, the stock market hasn't been doing so hot these past couple of months and I've seen about 9k of my money disappear into thin air. I talked to the firm where I have my money and they said I should leave my managed account alone and over the long haul, it'll grow to more than what it was originally. I'm freaking out. Any advice as to what to do? I've been told to leave it alone and ride out the market. But some have told me to close out my managed account with the firm and convert the money into cash and bonds.

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    Default Re: Stock Market Nonsense

    If this is a retirement fund and you won't need the money for a long time, then IMHO the people who told you to leave it alone were right. The market has averaged 10% per year over the last 50+ years, but that has included many dips along the way, including some big drops that took years to fully recover.

    Applying short term thinking to long-term money is exactly what leads to panicky investors to buy high and sell low, which just locks in losses forever and takes you out of the market when it goes back up. Unfortunately this is exactly what the morons who are telling you to convert your money into cash and bonds are proposing that you do.

    OTOH, if this is money you will need in the short-term, then cashing out at least some of it might be good advice. Of course, short-term money should never have been put at risk in the stock market in the first place.

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