When the stock markets are gyrating faster than Shakira’s hips what a retail investor is suppose to do?
Most of the retail investors just do what they are not suppose to do, i.e. they start selling their investments and swearing off never to buy stocks again only to forget their oaths when the market peak again. So a typical retail investor does exactly what he is not suppose to do: Buy high and sell low, and this is a cycle that keeps on repeating.
At this juncture once again it will be prudent to remember what the Oracle of Omaha has said multiple times: "I have made more money by doing nothing, than by taking action". And my friends who are you and me to argue with the man with better record than all other investor you and I know combined.
So what am I doing when the market is trying to compete with Shakira? Well what can I do except for sit back relax and enjoy! After all Hips don’t lie!!!
This will pass and if the business you have invested is good and has long term potential it will continue to grow. Please note I am using the word business in the last line and not STOCK.
Thanks for reading.