Saturday, August 18, 2007

Don't Do Anything Stupid


McNay on Money






Don't Do Anything Stupid

The stock and credit markets have been going crazy. I worked during the 1987 crash and every major panic in the past 25 years. What I learned is to stay calm.
If you were smart enough to sell all your real estate last year and all of your stocks on July 19th, you are a genius; sit tight and pat yourself on the back.
If you did not, do not do the stupid thing and panic.

I own a couple of pieces of real estate that I would love to sell. I am going to sit tight with them until the market bounces back or someone offers the correct price. There is no reason to panic and sell into a bad market.

I had about 400 clients when the 1987 market crash occurred. Four sold the next day even though I urged them not to; they got hurt. The other 396 did very well over the long haul.

As my dad would say, the key is to be zigging when the others are zagging.

I blame a lot of what is going on with the market on the stupidity of Federal Reserve Chair Ben Bernanke. I would like to say I was wrong about Ben, but I was not.

Here is what I wrote earlier:

Big Shot Bernanke

Nice Guys Make Lousy Senators

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