Vanguard and Fidelity investors didn't flinch as the market tanked
Time and time again, fearful investors who pull out of the market when the going gets tough end up committing the cardinal sin of investing: buying high and selling low. Most people seemed to get this, even going as far as making Warren Buffett-like moves, being “greedy while others are being fearful,” the Oracle of Omaha’s old recipe for success.
“During the last week of February and the first week of March, the majority of households trading moved money into equities rather than into fixed income (bonds and cash),” Vanguard’s Amy Lash told Yahoo Finance at the time. “More than 7 in 10 households trading moved into equities.”
more money in, it means you can buy buy the S&P 500 (let’s assume they’re buying index funds) at a discount. " data-reactid="19" dir="ltr" style="box-sizing: border-box; margin-bottom: 1.143rem; overflow-wrap: break-word;">That’s even more bullish than staying the course. For long-term investors saving for retirement, in it for the long haul with their 401(k) and IRA accounts, staying the course – not selling your stocks or funds when the markets go haywire – seems obvious. There’s a long time for the market to bounce back — and for many people who put more money in, it means you can buy buy the S&P 500 (let’s assume they’re buying index funds) at a discount.
Source:https://finance.yahoo.com/news/vang...nt-flinch-as-the-market-tanked-123748314.html
Time and time again, fearful investors who pull out of the market when the going gets tough end up committing the cardinal sin of investing: buying high and selling low. Most people seemed to get this, even going as far as making Warren Buffett-like moves, being “greedy while others are being fearful,” the Oracle of Omaha’s old recipe for success.
“During the last week of February and the first week of March, the majority of households trading moved money into equities rather than into fixed income (bonds and cash),” Vanguard’s Amy Lash told Yahoo Finance at the time. “More than 7 in 10 households trading moved into equities.”
more money in, it means you can buy buy the S&P 500 (let’s assume they’re buying index funds) at a discount. " data-reactid="19" dir="ltr" style="box-sizing: border-box; margin-bottom: 1.143rem; overflow-wrap: break-word;">That’s even more bullish than staying the course. For long-term investors saving for retirement, in it for the long haul with their 401(k) and IRA accounts, staying the course – not selling your stocks or funds when the markets go haywire – seems obvious. There’s a long time for the market to bounce back — and for many people who put more money in, it means you can buy buy the S&P 500 (let’s assume they’re buying index funds) at a discount.
Source:https://finance.yahoo.com/news/vang...nt-flinch-as-the-market-tanked-123748314.html
