I belong to an investment club connected with a megachurch. Most of the members are baby boomers. One of the main pieces of advice given to us by a wide variety of speakers is to not sell your stocks in a panic during a bear market or even in a huge market crash. (Such as 2000-2002 or 2007-2009) Instead, during a bear market, we should be buying stocks not selling them.
During the first 10 days of this crisis, we all were cocky and acted like this was not a big thing. But as the stock market kept falling and it appeared our political and business leaders were failing us, more and more members of the club reported that they had sold most or all of their stock investments and went to bond funds.
Now the Bond Market has even turned against us. During the last 5 days, I have seen drops in bond mutual funds that were more extreme than even the Great Recession. Even ultra-short bond ETF’s like GSY has dropped in value significantly.
Many members of the Investment club are saying- THIS TIME IS DIFFERENT- and wish they would have gone to all-cash 2 weeks ago but some are holding out selling because they are already down significantly and are too proud to move from paper losses to real losses.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.