Getting Out But Sleeping Less

The economy situation convinced Max to cash out his stock market portfolio. Should he get back in?

QUESTION: Max cashed out his portfolio in March, before the stock market dipped. He couldn’t sleep at night with the market swings. What should he do with the cash?

ANSWER: I wouldn’t have cashed it out. You cashed out high, and now you can buy low, but I don’t know if it will go down some more. You’re freaking out and you’re not thinking long term with your investments. It’s kind of odd that you do the stuff that’s the opposite of what I teach, and then ask my advice. I say go back to the stuff I teach, because it’s what I do. I invest long term and don’t worry about this Friday or next Friday or any Friday in the future. The American economy will prosper in the next 20 years because it always has to this point.