No, please don't sell everything

Would you sell your own business just because someone offered you a lower price than eight days before? No? Well don’t do that in the sharemarket. When it comes to investing, the most frightening time I can remember was in 2008/2009. Share prices plunged as the Global Financial Crisis took hold, international banks collapsed, and the global economy really did stand on the brink of financial Armageddon. Yet here we are seven years later. The world didn’t end. And the hyperinflation that some thought would be unleashed by central banks slashing interest rates in the aftermath didn’t happen either. The Australian sharemarket hasn’t performed brilliantly since then, it’s true, but nor has it been a disaster. The family portfolios I manage have grown in value nicely, even if the total income they produce has contracted a little because of lower interest rates. So I don’t understand yesterday’s call by RBS to ‘Sell everything’. Occasionally the All Ordinaries index falls for eight days in a row, like it just has. It’s no cause for alarm, let alone panic. Full article: (VIEW LINK)