Craig Brockie
Dear Mike:
Much like the gambler, as an investor you gotta know when to hold ’em, know when to fold ’em, know when to walk away, and know when to run.
I last wrote you in October suggesting your readers “hold ’em” and avoid selling their mutual funds at that time. October was filled with panic, gloom, and doom after the stock markets had dropped 20 percent and actually was an excellent time to buy investments.
Since October, the markets have risen more than 25 percent and many reliable investors are showing that the rally is over. Now, therefore, is a wise time to “walk away” by calling your investment advisor and instructing them to sell all of your mutual funds.
The proceeds can be held in cash, allowing you to sleep soundly knowing your retirement savings are safe and sound.
The next leg down for the stock markets is likely to be more severe than the crash we experienced in 2008.
Those who fail to sell their mutual funds soon almost surely will lose half of their money within 12 months’ time.
Sincerely,
Craig Brockie
