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iamnik77 (95.65)

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October 16, 2008 – Comments (3)

So I just took a Fool poll asking whether I am staying in this market or not. I side with the 39% of Fools who are trying to get all of the cash they can to buy up these rare bargains. Of all the varying responses to the poll I can sympathize with most of them. But I get a sinking feeling in my stomach about the 4% of Fools who are pulling everything out of the stock market and going 100% cash. Whether this sinking feeling is for them or for myself I am not sure.

I wonder if their actions are rooted in fear and weakness or if they are based on brutal objectivity, a willingness to admit being wrong about stocks, and the courage to take a large loss to avoid a larger loss. My rational side tells me that buying stocks right now is a high percentage play if I am looking to accumulate wealth. I may not be happy with where the market is a year or two from now but five to ten years from now I don't think I will have regrets about buying stocks in this market.

Everybody I know has left their investments unchanged.They aren't happy about this market but they aren't making hasty decisions out of fear. This leaves me wondering: Who are these people who have pulled all of their money out of the stock market? I would like to meet one of them. What kind of impression would he/she make on me? Would this person speak complete nonsense or would he/she appear to be a sensible person? What explanation would he/she provide for essentially putting the money between the mattresses?

Has anyone on this site met one of these people? What was your impression? I would love to hear about it.

 

3 Comments – Post Your Own

#1) On October 16, 2008 at 10:53 PM, dwot (47.53) wrote:

I pulled all my money out about a year ago.

I am considering getting a brokerage account open again, but I am not in a rush.

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#2) On October 16, 2008 at 10:58 PM, awallejr (81.55) wrote:

I know quite a few who just couldn't handle the volatility and nasty declines.  They took their losses and slept easier. 

This really is a great market for NEW money.  Getting those "burned" people back in, however, might take awhile.

As for me, I just drink more scotch and keep telling myself to think 10 years.

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#3) On October 17, 2008 at 11:47 AM, DarkToast (43.99) wrote:

I bailed out of the market at the end of June, managing to save a taste of the commodity bull. I didn't sell much at a loss and was up overall.

On October 10th and 13th I got back into the market about 50%, concentrating on stocks with high dividends.

When you are down 40% is not the time to think about selling. 

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