Who doesn’t love a bargain? Finding a great pair of shoes or item of clothing on sale is always great. Groupon’s for everything from dinner to a concert are constantly being used to get a deal. So why don’t we like it when our investments are on sale?
2016 has not been positive for the markets as of yet. We still have a lot of year ahead of us. Most investors are about to receive their first quart reports and will not be happy with their numbers. We find losing $100 much more painful than the joy at a $100 gain. Why is that?
If you are a long term investor, down markets allow you to buy more shares because everything is on sale. More shares generally will equal more income from dividends and capital gains in retirement.
If you regularly contribute to your investments through your 401k, or a similar plan, rejoice!
While you are accumulating, you want your investments to be on sale.
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