Buy & Hold? Quit & Fold? What Can You Do?

“Stay the course.” “Stick to your plan.” “Don’t make emotional decisions.”

No matter what type of investor you are, the advice given above is usually pretty solid. And will usually keep you on track toward your goals.

But then, in a down market like this, even those of us with the strong intestinal fortitude have to take a step back and look at what’s going on. And what we can live with.

This is the basis of a very eye-opening article I read on today’s NYTimes.com.

The author, Paul J. Lim, explores some important questions – such as: “Should buy and hold investors think about selling some of their lagging stocks?”

He goes on to tell us that the S&P 500 has basically gained nothing over the last 10 years. So, what does that do for buy-and-holders?

But then, what about those investors who sell at the first sign of despair? Aren’t they hurting their long-term prospects? Yes and No and Maybe. It all depends.

And that’s the big phrase here “It all depends.” There are no hard and fast answers here. But Paul and his interview subjects reveal a few options that can help all of us get thru this economic downturn.

So, if you’re wondering what you can do now, check out the article. It could help you make some important decisions that can help you not only now, but also in the long run.