While I don’t know what’s going to happen in the stock market tomorrow, I do know it is rarely a good idea to sell into panic. In my 35+ years managing money, I cannot recall a single time when a client who made a panicked decision to sell stocks was later glad they did.
Whenever the market has a significant decline, and I find myself worried that it will fall further, I go to my Timeless Investment Wisdom library to reread the many quotes I’ve saved over the years and continue to add to. Below are a few that seem appropriate given last week’s market decline, in which the S&P was down ~9%. It is my sincerest hope that these words of wisdom will help calm you, give you perspective, and protect you from making a decision you might later regret.
The Crowd is Usually Wrong
When all the experts and forecasts agree, something else is going to happen. My whole experience on the economy has been, if the majority of economists agreed on something, I knew I had to watch for something different. – Bob Farrell, former Merrill Lynch Chief Market Analyst
The Folly of Predictions
I’ve never seen anyone consistently and accurately predict what the economy or stock market is going to do. No one. Not warren Buffett. Not Elon Musk. Not my friend [former Fidelity mutual fund manager] Peter Lynch. Certainly not me. – Ron Baron, American investor and founder of Baron Capital
Crises Precede Opportunities
Out of crisis comes opportunity. You make most of your money in a bear market. You just don't know it at the time. – Shelby Davis, American investor, philanthropist, and founder of Davis Advisors
Patience
The stock market is a device for transferring money from the impatient to the patient. – Warren Buffett, American investor, philanthropist, and CEO of Berkshire Hathaway
Gratefully,
Sean Gross, AIF®, CFP® | Co-Founder & CEO