Mar 092020
 



The market is down about 16% due to fears over oil prices and the novel coronavirus. For many of us that’s thousands of dollars vanished. Maybe tens of thousands. Might as well end it right?

Side note – the epidemic of suicides after the 1929 crash is a myth.

First things first. You didn’t sell did you? DID YOU? I sure hope not. If you did you’d better rebuy everything you sold, praying the price hasn’t moved. Here’s what everyone FOOLISHLY thinks:

Oh I’ll just sell my investments now and re-buy them when the market bottoms out

WRONG

How do you know the market isn’t going to rebound the day that you sell? How do you know where the bottom is? YOU DON’T. No one does. Some people will claim they know a bottom, but predicting it accurately is like predicting a spin of the roulette wheel.

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Oct 042015
 

Sell your losing positions

Thanks for reading!

Oh I should elaborate a little.

Mistake #1 – Assuming market trends continue indefinitely

Last year I bought into ZUH (BMO Equal Weight U.S. Health Care). I was attracted by the massive gains over the past 3 years…surely they would continue indefinitely? right? right??? (Mistake #1 – assuming the current trend will last forever) But even if the gains relaxed, the aging baby boomer population will surely continue to savage devour healthcare services? Considering these points was enough for me to scoop up some shares.

As you may or may not know the health care index recently got taken out back and savagely tenderized. No doubt helped in part by Mr “lets raise the price of this life saving drug by 5000%“. Naturally my first thought was “If only I had sold at the top I would have made sweet sweet bank!”. Alas if only I could predict the future! Marty Mcfly arrives from 1984 in a couple weeks, maybe he can help.

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