Don't Sell!!!!!

With the world falling apart, we interrupt this highly personal and informative blog for a public service announcement:

KEEP YOUR COTTON-PICKING HANDS OFF YOUR STOCK INVESTMENTS!

Before I began my intrepid journey seeking to crack the elite cadre of published authors, I was a marketing communications director for a large investment company for nearly 30 years. One of my main duties was writing investment strategy materials for non-investment professionals, especially for times like these. So here's what I would advise investors to do right now with your stock portfolio:

NOTHING! KEEP AWAY FROM THE SELL BUTTON!  Here's why:

From 1995 to the end of 2015, the STOCK MARKET averaged nearly a 10% annual return.

During that same period, the AVERAGE INVESTOR averaged just over 5%. (All numbers are from the S&P 500 and compiled by Dalbar, Inc.)

Why did investors make half the gain of the overall market over the last 20 years? Because of panic selling.

Two emotions rule the stock market: greed and fear.

Greed: When the market is going up, everyone piles in and buys and stock prices skyrocket.

Fear: When the market crashes, everyone sells as prices plummet. In other words, the average investor buys high and sells low. The result: most investors do much worse than the market over time.

So my advice? Ignore what's happening in the market. You don't know how long or how much it's going to drop. You also don't know when and by how much it's going to recover. Instead, invest according to your goals. Are you saving for retirement? A house? For education? Those are the things that should drive your investment decisions--not how fast the market is dropping or rising. That's a fool's game.

Proof? Me. I weathered the Dot Com bust in 2001, the Great Recession in 2008 and was able to retire at age 62. How? By saving real hard and never letting the market dictate my investment decisions. I didn't beat the market, but I didn't underperform it either. I put my money in broad index mutual funds and, most important, LEFT IT THERE!

I know it's tough. Today we officially entered a Bear Market (a drop of 20% or more from a recent high). The temptation to sell is super powerful. But if you sell now, you're locking in your losses and the potential gain when the market turns around--and it will.

Most bear markets recoup their losses in under two years. So make sure you have enough LIQUID INVESTMENTS (savings, CDs, money markets, short-term bonds) to get you through at least two years without selling any stocks and you'll be fine.

Let me know if you'd like more of my priceless investment wisdom in this blog.