A couple of quick thoughts here...

Let me be clear, there is only one way to avoid losses and that is not to invest money in anything other than a government backed treasury notes and "risk free" securities. Incidentally, as an investment these offer probably the lowest rate or return you could possibly achieve.

You need to evaluate your own level of risk aversion. Based on what you've stated here I'd say your level of aversion is higher than your portfolio choices would indicate.

Investing is not about "timing the market" or quick gains. Its about portfolio diversification and "time in the market".

This post was edited on 8/15/13 at 11:49 am

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Posted by foshizzle

Washington DC metro

Member since Mar 2008

40599 posts

Posted on 8/16/13 at 12:11 am to wiltznucs

quote:
there is only one way to avoid losses and that is not to invest money in anything other than a government backed treasury notes and "risk free" securities

There are times when that doesn't work out well either, fwiw. In this context, "risk free" just means you'll likely get dollars back. Whether the rate of return keeps up with inflation is another question.

quote:
It wasn't cut in half unless you panicked and sold everything during the crisis. If you left everything alone in the market, you have not only regain every penny you lost, you're up over 50% since March 1, 2009, and if you were buying during the downturn and at the bottom, you're up considerably more than that.

Stay the course, it works.

I did this myself, and yes it does work.

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