If there’s a golden rule for long-term investing, it’s that betting on disaster is always overpriced, and betting on “it’ll all work itself out” is always a bargain.
Lighten up because you think you might have too much exposure to stocks, not because you think you will be able to get back in at a better price later on.
The object of investing is to ensure prosperity, not become obsessed with making money. So put your investing on autopilot with a sound plan that meets your goals and monitor it once a year. Then go out and live.
Michael Batnick is a managing partner at Ritholtz Wealth Management. He is the co-host of Animal Spirits, What Are Your Thoughts, and The Compound and Friends. For disclosure information please see here.
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