And they are totally, completely, utterly full of it. All of them, completely 100% nonsense. They know nothing. It is your job-- it is your duty to ignore them.
|Dire warnings: Michael Sincere|
Secondly, those guys in suits are paid to raise the alarm. No one wants to watch a guy who tells us 'the markets are strong, stocks are rising, your money is safe' (or absorbs the advertising bookending his statements). That makes for lousy TV. Worry is what gets viewers to pay attention. Have you seen the local evening news in the last 20 years? It's all shootings and car wrecks and fires and kidnappings. Any statistician will tell you our society hasn't gotten more violent or more unsafe over the years. But the news sure has. And financial news is no different.
Third, it doesn't matter anyway because the stock market always rises more than it falls. Even if you fall prey to the fear and even if your whole portfolio takes a big hit-- 50% has in fact happened-- if you ride it out you will be fine.
"The stock market is a device for transferring money from the impatient to the patient." --Warren BuffettI cannot emphasize this enough: doing nothing in the face of widespread market panic is the hardest thing in investing. It is far more difficult than successfully picking growth companies, more difficult than the discipline to keep socking away the money to buy with. Sitting on your hands-- or tougher still, buying-- is flat out viciously and miserably hard.
It is also the key-- in fact, it is critical to long-term wealth. You cannot get there from here unless you refuse to sell when things turn ugly. Have confidence in your companies, have patience in the market.