When the stock market prices go down and the value of your portfolio decreases a lot, you may want to ask the question: “Should I pull my money out of the market?”
Although that is understandable, in most cases, you can do better rather than selling for the long-term return of your portfolio.
In this video, John Clifton “Jack” Bogle, one of the best investors in the 20th century, gave his advice about how to invest when the market declines.
In the video, he talked about how to invest effectively in a really hard time. He suggested people reduce their stock levels by 5-10% and adjust their portfolios based on their abilities to deal with market declines, including their financial abilities and emotional abilities.
An avid investor and money manager himself, Bogle preached investment over speculation, long-term patience over short-term action, and reducing broker fees as much as possible.
The ideal investment vehicle for Bogle was a low-cost index fund held over a period of a lifetime with dividends reinvested and purchased with dollar cost averaging.
Warning: This video is to show you John Bogle’s view about market decline. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane
