Warehouse Losses Do Not Count Until You Sell
Recently, my investments have been growing sharply, although they have a downward trend; the total return on my portfolio has grown from 10.3% to 9.3% over the past week.
But I’m not going to sell – and if you’re worried that the coronavirus outbreak, the impeachment verdict, all tariff issues, or any other big news could negatively impact your portfolio in the long run, here’s advice from Sarah O’Brien, CNBC’s personal finance:
Long-term investors – that is, those who will not need money for decades – should remember that while the stock market may rebound or enter a prolonged recession, none of the losses you see on paper are not recorded unless you sell.
I have never said this before – my motto when the market goes down is “time to invest more money while the stock is selling!”
But I really like it as a concept.
Inventory losses are not counted until you sell.
If you can buy and hold and then continue to hold , the chances are high that the market will eventually rebound. However, I’m not an investment advisor and I’m pretty sure I have to tell you that you shouldn’t take this as real investment advice.
It’s just a reason to think about the next time you wake up and see that your investment has lost value again.
(Also, make sure you have some cash in your reserve fund so you can keep those investments in the market instead of selling while stocks are low because you have to pay a mortgage or something.)