Now what? Panic?

08/08/2011 by

Burton Malkiel had a great article in today’s WSJ. Malkiel is a highly regarded professor from Princeton and the author of the investing bible, A Random Walk Down Wall Street. Here’s a link to the article:

http://online.wsj.com/article/SB10001424053111903366504576492512709525754.html

The title really says it all….Don’t Panic About the Stock Market, Investors who resist the urge to get out during rough times like this will be glad they did.

Here are some key points that Malkiel makes in the article:

“This is not the market meltdown of 2008.”

“Investors who have sold out their stocks at times when there have been very large declines in the market have invariably been wrong.”

“My advice for investors is to stay the course.”

“No one has ever become rich by being a long-term bear on the fortunes of the U.S. and I doubt anyone will do so in the future.”

“In times like this investors should rebalance their portfolios….years from now you will be glad you did.”

I believe Malkiel is somebody worth listening to. He has devoted his whole life to studying the financial markets and how they work. He has no ax to grind. His only goal is to find the truth about investing.

What’s going on now doesn’t matter to the long term viability of your portfolios.

Filed Under: Clarity Coaching Tagged With:
About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry