Did You Foolishly Lock In Your Losses?
Last year when the stock market had tanked badly I wrote about how I wasn’t worried and adopted the attitude of “wait.” I also accelerated the contributions to my Roth IRA for the year at that time as well.
Well, yesterday the markets closed at a point where they have recovered the 25% they lost between January 1 and the markets low point on March 9 and are now up for the year… yes, only a tiny amount but they are back at least where they were on January 1.
Could it gyrate up or down again? Without a doubt it will.
Now a possibly painful question… Did you lock In your losses by selling during that 10 week period?
Are you kicking yourself because now you might want to buy back in but can’t get back as many shares as you had with the money you got from selling because the prices are higher?
They say the stock market is a rich man’s game… that’s not exactly true… it’s a game for those who have time… time to sit back and wait… and not sell off no matter how bad it might seem.
It eventually comes back… and this is the beginning of a recovery from the third such market collapse I’ve lived through… with the market coming back stronger every time.
However, if you “locked in your losses” you became one of the true losers. Did you?
Photo credit: stock.xchng.