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Someone who plays the odds and loses and watches someone who goes against the odds and wins....Well is that luck??


I hate to draw on an old and over used cliché, but "you only lose if you sell."

Take the housing market. You buy a beautiful home and the market falls. Suddenly your home is worth less than when you bought it. You are one of two people ....

(1) You can afford the home and to continue to make the payments as they are within your ability and you will keep it, expecting that home values will recover, as they always have. You know you are in a good area, good neighborhood, good schools, everything is still there that made your home purchase desirable.

(2) You bought a home that was above your means. You expected it to go up, you needed it to go up to keep it, you purchase was not based on desire to own "that" home, but was in the expectation that any home would go up and it's rise would make you secure. You decide you have made a mistake and will be willing to sell the home at a loss. You cant see the long term benefit, you don't believe in the neighborhood, city, style of home or the desire of others to own that home when the market settles. All you see is the short term loss in the housing market. So, you sell with the expectation you will buy again when houses are again rising in price. You hope you have the luck to re-enter the housing market when it has shown recovery but has not increased above your sell point.


That is what is happening with stocks.

If you like the house and can afford to keep it you do

If the stock you bought has value, it has cash, it has no debt, it has great management and product ....... and those things have not changed, ....... why would you not live with it?

Bears (who honestly does not understand)
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