Pulling Out Early Always Leaves a Mess

If there is anything I've learned from being totally invested during the 2008 financial crisis, it's that to just sit tight and stay put. Never pull out of the markets or your financial house will be a total mess.

Of course if you have never experienced a pullback in major equity markets then you are beyond stressed out. Maybe you're not and good for you if you managed to keep your head on straight.

What about December 2018? Did you decide to sell everything to square the books or because you had seen enough red on your account statement from October and November. December was the worst month on the stock market in 10 years. However, the Dow rose 1,000 points on the 27th of December giving it, it's biggest one day gain and pulling the market out of bear market territory.

What did you do? I hope you didn't pull out too early and not stick around for that sizable gain.

You have to stay invested to realize gains when they come and they always always come. It's a long game so buy quality and NEVER sell!

Do you have any discipline? NO, then go out and get some or get out of the stock market. Gird your loins because the coming year will be more of the same.

Just yesterday on the first full day of trading of 2019 the market (Dow) opened almost 400 points lower. By the end of the session we were slightly in the green.

If you were tempted to sell because you couldn't take it anymore or worse yet bought bonds or went to cash you severely missed the boat.

We will all have our own definition of too early and mostly it depends on age. I'm already retired so why would I sell any income stocks when I like to use the dividends to supplement my pension

You might be 20 years out from retirement and in that case just sell some of your major mistakes on days when the market is roaring ahead.

No need to liquidate everything and pull out completely.

• focus on future rising earnings
• use market sell offs as buying opportunities
• short term gyrations should be ignored
• stay disciplined
• we are not buying stocks today to sell tomorrow
• think long term - ALWAYS!
• what goes down will always go back up over time
• it helps to look at the price you paid for your stock when the market goes down
• there will always be another bull market

NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT!

No crypto, weed, gold, commodities or cyclical companies. Just me!

Looking for Saving Ideas So You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Recommended Reading

This is the second edition of Robin Speziale's book 'Capital Compounders'. I have just received a review e-book version that I am currently reading and will have a review posted here and on Amazon in the coming weeks.

Robin invests in growth stocks and is the best selling author of 'Market Masters'

Robin has been saving, investing, and building his portfolio since the age of 18. Now, 10 years later, at the age of 28, he’s amassed a $225,000 stock portfolio. He lives in Toronto.

Besides following his blog he has a Capital Compounders Facebook Page well worth joining for learning where to better invest your capital.