Long Term Stock Holdings When Sold Into a Bear Market

We know that over the long term, stock holdings can grow a substantial amount. Any downturns can be corrected with time.

There is a problem with this thinking and, unfortunately, little an investor can do about it, except keep one’s fingers’ crossed.

Should the market flop just when an investor needs securities proceeds and has to sell stock, no planning in the world, no high-powered adviser, will help.

If you need the funds, the long term advantage of holding stocks will not help in a down market. In an emergency, selling into a bad market will create losses, despite long-term growth potential.

Apart from keeping your fingers’ crossed, it pays to anticipate smaller emergencies with some liquidity, such as short-term bond holdings.