By: Larry MacDonald
“Unless you can watch your stock holdings decline by 50% without becoming panic-stricken, you should not be in the stock market.” Warren Buffett
“The United States invariably does the right thing, after having exhausted every other alternative.” Winston Churchill
“Stop experimenting with your savings.” Ad on Yahoo Finance, promoting ING Direct’s high-interest savings account.
“When there is a stock market boom, and everyone is scrambling for common stocks, take all your common stocks and sell them,” he elucidated. “Take the proceeds and buy conservative bonds. No doubt the stocks you sold will go higher. Pay no attention to this–just wait for the depression which will come sooner or later.” When this depression–or panic–becomes a national catastrophe, sell out the bonds (perhaps at a loss) and buy back the stocks. No doubt the stocks will go still lower. Again pay no attention. Wait for the next boom. Continue to repeat this operation as long as you live, and you’ll have the pleasure of dying rich.” Fred Schwed, Where Are the Customers’ Yachts?
2 Responses to “ Quotes for a bear market ”
Ahh…it’s so true.
Unfortunately, I drastically underestimated the depth of this trough, so have ended up losing a fair bit. But the Buffet quote stands, and I have managed to avoid panic (but not stress).
By Neil on Nov 20, 2008
Neil
A lot of people have done that underestimation. Let’s hope the markets recover soon.
LM
By Larry MacDonald on Nov 23, 2008