Have you ever thought about abandoning your stocks? Or you have been challenged by owning stocks? The truth is that you will be tested by stocks, and at times you will feel that they have permanently lost their value. You will feel that they are worthless and have let you down. You might ask yourself: “Why am I holding these things? They’re not doing anything for me.” But despite it all, you have to hold onto stocks and never give up on them.
In the days of the great Depression, an old sign dangled by one staple from a piece of rusting barbed wire outside a farm. The sign read:
“Burned out by drought,
Drowned out by flud waters,
Et out by jack-rabbits,
Sold out by sheriff,
We all need to remember this sign that hangs on a rusty broke down fence in Texas that stocks like everything else in our lives are good and then they can be challenging. But we don’t need to be burned out, drowned out, or sold out by them. They will always carry us to where we need to be if we stay the course.
People forget about all of the risks that exist while investing. When they forget, they need to be reminded that holding onto stocks is needed for them to maintain their current or planned retirement lifestyle. I meet with people all the time that forget that the price of everything increases over time, and that by just saving cash they will actually lose money in the long run. There is no other vehicle out there, besides stocks, that gives them the continual long term returns that they need to enjoy the lives that they have created and worked for. And so they tend to abandon stocks and they think that they can buy and sell and get out of them and dump them when they’re higher or their low, when they actually need to stay the course.