By Sheryl Smolkin
In the last several weeks there has been a stock market correction and although the market has bounced back to some extent, for some investors it has been a bumpy ride. Here’s what several personal finance columnists and bloggers had to say about recent market gyrations.
The Globe and Mail’s Rob Carrick says Balanced is best: Never doubt long-term portfolio gains. No matter what the markets do in the short term, the long-term potential from investing is not in question. He also says As markets plunge, it’s time to take stock of Investing habits that have become sloppy. For example, many people are too financially committed to their homes and lots of households owe too much
On Retire Happy, Jim Yih shared The Five Realities of the Stock Market. He says markets go up and down but they go up twice as often and twice as much. Logically, when markets go down, the odds are in your favour to make money in the times ahead.
What Are You Doing With This Stock Market Pullback? Sorry, but no one can help you during a market correction says Robb Engen at Boomer & Echo. Watching your portfolio drop from $100,000 to $90,000 over the course of a few weeks is painful, no doubt. But you’d be better off sticking your head in the sand and waiting it out instead of trying to “do something about it.”
In Stock Market Momentum, Michael James on Money says the recent downtrend in stock prices has many commentators saying that we are “in a correction.” But all we can say with any certainty is that we have had a correction. It may or may not continue. Saying that we are in a correction implies that falling prices will continue over the short term, which is far from certain.
Finally, Mark Seed at Million Dollar Journey interviewed Derek Foster, “Canada’s Youngest Retiree”. While the general consensus is that investing only in stocks is too risky, Derek is sticking with dividend stocks because at age 40+ he has other income streams from his books and speaking engagements. Foster says, “Many people point to the 2008-2009 downturn as evidence that bonds will save you during downturns, but what about the 5 years since then? Look at the long-term returns of stocks over bonds – I think the stats speak for themselves.”
Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.