Securities holdings can grow a substantial amount over the long term.. Market downturns will be corrected given sufficient time.
There is a problem should a sale be necessary during a downturn. Unfortunately, there is little an investor can do about it, except keep one’s fingers’ crossed about forced selling in a down-cycle.
Should the market drop just when an investor needs securities’ proceeds and has to sell, no planning in the world will help.
If you need 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.
Anticipate emergencies with some liquidity, such as short-term bond holdings. ( See the Earl J Weinreb NewsHole® comments.)
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