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Re: asus post# 25277

Friday, 12/07/2007 5:14:26 PM

Friday, December 07, 2007 5:14:26 PM

Post# of 75411
Investment Wisdom (Patience)

Is it true that market/company downturns can help you attain your goals?

It's counterintuitive but as a long-term investor you want the market/company to go sideways or down for an extended amount of time and then rally at the end of your time horizon.

That is not one of those luxuries you can predict in advance, but the fact is that markets will go up and down. Regular investing, whether every year in an IRA or every two weeks in a 401(k) plan, takes advantage of the market volatility. As Warren Buffet, the great investor, said, wouldn't you want to buy more hamburger when the price is down, not up?