Watching the Dow Plunge
The Dow Jones Industrial Average ended the day down 512 points, which is its worst performance since December 2008. The drop today basically means that the stock market has lost all of its gains for the year.
All of this means that I'm afraid to look at my investment portfolio today. I know it's set up for the long haul and one bad day doesn't mean anything when you have a 20 year investment horizon.
I firmly believe that if one's investments were sound the day before a stock market crash then they will, in all probability, remain so after said crash. Of course, the sad corollary to such a rule is that if one's investments weren't sound beforehand, one hopelessly screwed once a crash hits.
I firmly believe that if one's investments were sound the day before a stock market crash then they will, in all probability, remain so after said crash. Of course, the sad corollary to such a rule is that if one's investments weren't sound beforehand, one hopelessly screwed once a crash hits.
Anyway, on days like this, I am reminded of the great investors who managed to get through the Great Stock Market Crash of 1929 without losing a single penny. How did they do it? They had good investments to begin with and they didn't sell during a panic.
Instead, they remained focused on the long-term and they probably went drinking on days like this.
Instead, they remained focused on the long-term and they probably went drinking on days like this.
Regardless, I'm still afraid to look at my portfolio today. Maybe I'll just go drinking instead.
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