We've become a global community. What affects the US affects other countries and vice versa. We are witnessing an economic upheaval of historic proportions. Turn on any radio station or TV channel and the news is the same. Everyone's talking gloom and doom for the stock market and the economy. Scary, huh?
I'm trying hard to stay calm - and positive. A year ago, the Dow Jones Industrial Average hit an all time high just over 14,000. Today the market closed at 8,451.19, down 128 points. Historically, the market always surpasses the previous high - eventually. But, it's hard to watch. And it's disheartening to look at my portfolio.
I'm an investor, not a trader. Since I don't plan to sell, the losses are just paper losses. So, I have a choice . . . Listen to all the negative reports and sell in a panic. Or listen to very good advice from a man I trust: John Bogle, Founder of the Vanguard Group.
Paul Kangas interviewed John Bogle on his PBS show, Nightly Business Report. Mr. Bogle's advice is to just hold on. And if you're dollar cost averaging, just keep doing it. With the market low, it's a good time to invest in the long run.
Today I've been hearing that we may be close to the bottom. So, my plan is to keep a watchful eye on the market, but don't sell anything now. And I'll continue to re-evaluate as the days and weeks go by.
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