If you’re at the point where you don't think you can take more stock market losses, said Tom Petruno in the Los Angeles Times, “you have plenty of company. Worldwide.” But is it time to sell and cut your losses? The answer depends on how far off your retirement is, because bear markets don’t last forever.
If you’ve got a decade, “the current crash is actually good news,” said Henry Blodget in Clusterstock. In fact, it would be great if stocks stayed this low for a decade—dividend-reinvestment will buy you more shares for when the market recovers, and selling now would be “market-timing at its worst.” If you have only five years, your savings shouldn’t have been in stocks.
Investing in “booming overseas markets” was supposed to protect U.S. portfolios from losses, said Ben Steverman in BusinessWeek online, but that has backfired, as the U.S. crisis spreads overseas. So while it’s probably too late to pull out of your foreign holdings, the U.S., ironically, is now seen as “a relatively safe haven.”
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- This is what happens when Republicans actually enact their radical agenda
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- The Obama administration's nonstop incoherence on ISIS
- How I dug myself out of debt — and stayed that way
- 43 TV shows to watch in 2014
- 6 super-helpful iOS8 tricks you probably don't know about
- Why so many Christians won't back down on gay marriage
- 6 things the happiest families all have in common
- The science of sex: 4 harsh truths about dating and mating
- Russia is stealthily threatening America with nuclear war
Subscribe to the Week