Uncertainty has powered the incredible roller coaster ride in stock prices these past weeks and the remarkable (as well as historic) drop in bond yields. Don’t expect that to go away anytime soon. But do keep in mind legendary investor Ben Graham’s advice: “The intelligent investor is a realist who sells to optimists and buys from pessimists.”
Translation: During market routs like the one happening now consider adding to your investment portfolio.
Graham’s student, Warren Buffett famously said, “Widespread fear is your friend as an investor because it serves up bargain purchases.” Translation: Now might be a good time to put some cash to work or increase your contribution to your 401(k).