Saturday, October 24, 2009

Bear Markets Do Wonders for Retirement (If You Are Young!)

“The six-month bear market that wiped out nearly half of Americans' retirement savings threatens to scare away the class of investor who has the most to gain from it: young people”.
“Mutual fund manager T. Rowe Price says in a study that those who began to systematically invest in equities in severe bear markets were "significantly better off 30 years later than investors who began in bull markets".
Click to read the full article from: (TheStreet).
Investing lesson:
The article cited above is very consistent with my “contrarian philosophy." In other words, to succeed as an investor, you need to usually do the opposite of “conventional thinking."

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