Last week I shared some frustration seeing the sharp decline of portfolio value. One commentator asked a good question: "... how would you really feel if you lose 10%, 20% or even 30% in the market in a span of months? How about 50%?"
Fair question. In the midst of this market turmoil, we all should have the same gut check. Will you be comfortable with another wave of sudden and significant deterioraton of personal wealth? Or should you leave the market for the peace of mind?
To this end, BusinessWeek's recent interview with John Bogle, founder of the Vanguard Group, offers some real insight. Here are some quotes:
On Why One Shouldn't Leave the Market Now
Even if I was pretty confident that the decline will continue—and I think it's more likely than not—you've not only got to get out right, you've also got to get in right. You must be right twice. So if you get out now, and the market goes way down another 15 or 20%, which is quite possible, they will be so scared they won't get in. So I'm a stay-the-course person.
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