When Doing Nothing is Doing Something
We typically applaud bold, decisive action, even though the action may eventually turn out to have been misguided. At least something was done. Doing something provides a sense of accomplishment.
Today, governments around the world face a demand for action with respect to both the health care and financial crises we confront. A significant response appears necessary to stem the pandemic and market decline.
In other situations, though, restraint produces the better long-term results. Restraint can prove difficult because it goes against our strong desire to do something. Restraint need not mean weakness; it can show fortitude.
Remaining in the stock market at this time presents itself as a case for prudent inaction. Diversification has helped ease the blow so you can stay invested for the long term. The following links offer some thoughtful reasons why you should hold the course: Vanguard and Morningstar.