Originally Posted by billyjoe
Thanks for that inspirational message.
You can attribute that quote to renowned economist John Maynard Keynes.
He also stated, “ The market can remain irrational longer than you and I can remain solvent.”
The market always goes up for two reasons. Firstly; inflation causes the price of everything to increase. Secondly; the market is measured by indexes. These indexes regularly change the underlying stocks that make up the index as the stocks gain and lose in value.
So in reality the market will always go up, however individual stocks may be taken over or go bankrupt with little effect on the overall market. If you have an index fund you can sit and wait for the market to recover. It might take up to 25 years. If you have individual stocks there is no guarantee.
The goal should be to beat the market. You can’t do this by letting the market control what you do. You have to focus on what you can control. And the only thing you have control over is how you react to what the market does.
It’s your responsibility to manage your portfolio. You make the decision whether to buy, hold or sell any investment. Making the decision to hold a stock is the same as making the decision to buy that stock. As Keynes said, you can’t count on the long run.