I Sold All My Stock in 2018. It Was My Biggest Mistake
About this episode
Nik Johnson discusses the psychology of investing during market volatility and shares his personal experience of selling stocks in 2018, highlighting the importance of staying invested.
The stock market is falling, and the natural human instinct is to protect what remains by selling. In this episode of Everyday Money Heroes, Nik Johnson dives deep into the psychology of investing during high volatility and market corrections. Many investors feel the sting of a declining balance, especially when they have practiced delayed gratification to build their future. However, history shows that the catalyst for a crash—whether a pandemic, a housing crisis, or a military conflict—matters less than the consistent outcome: the US economy recovers every single time.We explore the critical differences between a standard market correction and a long-term bear market. Understanding these features of the financial system is essential for maintaining a long-term perspective. Nik shares a personal, transparent account of his 2018 investment failure, where selling during a 13.5% drop led to missing a massive 31% recovery the following year. This serves as a cautionary tale for anyone attempting to time the market. By analyzing data from JP Morgan and historical S&P 500 performance, we demonstrate why staying the course is mathematically superior to sitting on the sidelines…
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