Investing through a bear market

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 :

  1. 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.
  2. 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.
  3. 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!

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