A nice piece by Larry Swedroe via AllFinancialMatters. Swedroe talks about the necessity of bear markets - when market prices are falling significantly. It's interesting from my personal standpoint - I am a complete newbie when it comes to investing. I've been reading up on a lot over the last three months, but I have yet to actually commit to anything. I have $500 in my IRA; I plan on getting that at or close to $2000 by month's end, at which point I will finally decide upon an investment vehicle for that money.
But there are several key points in Swedroe's article. It talks about trying to time the market (and why it's a loser's game). Wise investing is about establishing a plan and being patient and disciplined. I'm working on the plan, I'm infinitely patient, and I'm getting better with the discipline. Also Swedroe points out that a bear market is actually a good time for new investors - stocks on the cheap! So despite the plummeting interest rates, this could be offset by an opportunity to let me start my portfolio with good value for my investment.
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