Studying finance and economics at University led me to start investing in stocks roughly 3 years ago. I felt that once I got on my feet financially and was able to put some funds away I should give it a go. Basically I have been able to make a 4x return on my initial investment through picking some well entrenched businesses and some emerging and I am now looking for some long term advice as i want to protect the wealth that i have created.
I see the decline that occurred in 07-09 due to the GFC and how it wiped out a large chunk of growth and of course investors’ portfolios, so my question is how do people deal with this? Do people advise to let their portfolios take a massive hit and wait for the recovery? Attempt to read the market and get out early to mid dip and re buy when stocks are considered cheap? To those who had a reasonable stock portfolio during the dip I ask what your tactic was and how did it fair? I’m intrigued to hear anecdotes of where it has gone well and not well at all.
