My Plan to Grab Big Gains (and Dividends) From the Selloff
Michael Foster, Investment StrategistUpdated: February 8, 2018
So stocks have had their steepest nosedive in seven years, and with the whipsawing market we’ve seen since, you might—might—be entertaining the knee-jerk urge to sell.
I have one word for you: don’t.
I’ll tell you why in a moment.
First, let’s look at why this panic happened, and where things go from here.
“It Means Nothing”
I’ve already fielded calls from worried family members and friends asking about their 401ks. When my mother emailed to ask if the Dow losing 1,100 points in a day was a big problem, I responded with three words:
“It means nothing.”
Of course, for everyday folks counting on stocks and bonds to fund their retirement, seeing a 4.6% drop in a day is horrifying—especially if you remember 2008, when such drops were the beginning of a horrific bear market that ended with a 50% decline in stocks.… Read more