Scared investors have a tendency to duck and cover when the stock market experiences a significant decline. The temptation is strong to hide money in fixed-rate investments and to wait the decline out. The trouble with this strategy is that investors who don’t have perfect foresight run the risk of missing out on the relatively swift recoveries that market makes. […]
Month: August 2002
The big bear strikes—now what?
“Things are different this time. Markets can continue to go up, despite stock valuations that have no rational relation to corporate earnings.” That’s what some of the experts were saying early in 2000. By now it is hard to find anyone who has not had those notions pounded out of them by what almost became the second-worst bear market of this century. […]
