Sunday, July 13, 2008

Learn to Love the Bear!

A great article by Jason Zweig in this weekend's Wall Street Journal. It's titled, "Stop Worrying, and Learn to Love the Bear." Zweig's main point is that bear markets provide the best investment opportunity for the prudent investor, and that wise investing, like losing weight, is simple, but not easy. It's boring and relies on consistent investment and discipline over decades - simply invest every month in low-cost index funds that track the market and a century of stock market data is on your side in terms of expected returns over the long term. Stay the course and ignore the market fluctuations - if anything, down markets represent the time when you should be putting more money into the market - stocks are on sale!

Reading this in addition to countless other articles and opinions reflecting this philosophy (one which men such as Bogle and Buffett espouse, especially for the average investor) just confirms what I've been feeling - I am actually excited to be beginning my investing career when stocks are at bargain basement prices. I will gladly watch the S&P continue to drop over the next few months!

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