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I think its time to unload “The Picture.”

This is a selfie of me  in front of the NYSE at the hight of the financial crisis and below is a snapshot of my 401K taken 4 years later.

What you see is a very worried 42 year old man whose investment returns on his life savings was dwindling close to its cost basis (the amount I saved minus earnings).

So what did I do? Nothing!, I did not adjust my 70% stock portfolio one penny. Sure I was worried, that is why I took the picture.

But I had some understanding of market history and human behavior.

I knew that stocks have always returned more than other investment options over long periods of time.

I knew that humans are hard wired to run to safety when they see danger, whether that danger is a predator or a threat to their net worth.

I also knew that humans will rush back to stocks with the first sign of recovery like we all did when the Powerball lottery grew to 1 Billion!.

For some very intelligent perspective here are two short, great articles:

 

http://awealthofcommonsense.com/2016/02/when-global-stocks-go-on-sale/

 

http://theirrelevantinvestor.com/2016/02/10/you-are-owed-nothing/