Wow! a 650 point drop on the eve of Christmas….to round off almost a 20% drop in the indexes.
In our view, these market gyrations exist to serve only one purpose … to scare the small investor into selling at a loss at the worst possible time.
Three thoughts :
- It is nice to have a paid off house … our house is still as warm and comforting as ever and has not shrunk 20% in size. Hard assets provide a good balance to the portfolio.
- We believe that the US economy is well positioned relative to the rest of the world. Reacting to the short term stock market fluctuations would be speculative and ill advised.
- Our portfolio throws off a good amount of income which will be reinvested as per schedule. No change in strategy at the notgogentle household.
Merry Christmas everyone!