Which scenario would you prefer?
A. Stocks go up and remain at elevated prices for a long period of time.
B. Stocks go down and stay down for a number of years.
Which option did you pick? This is somewhat of a trick question because the best answer depends on your age and whether you are in the accumulation or the dispersion phase of your financial life.
If you are a retiree, then you should pray for scenario A.
If you are just hitting your highest earning years, you should rejoice if scenario B occurs. You want stock prices to be low so you get more dividends and earnings for the dollars you invest. Be happy when corrections like this one present you the opportunity to accumulate more shares on the cheap.
An important point well stated.ReplyDelete
Agreed with DIY Investor. I'd go with B since I'm still young.ReplyDelete
Going with B!!! However, I need the market to rebound within 12 years or so.ReplyDelete