What Not To Do Right Now

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Robert Bruner
Dean of the Darden School of Business, University of Virginia, author of the Panic of 1907: Lessons Learned from the Market's Perfect Storm
The very behavior that produces a panic is withdrawing money from institutions and the market. This appears to be prudent in that it helps to avoid losses, but it also creates a self-fulfilling prophecy of decline. One could be purely altruistic and insist on remaining fully invested or continuing to participate, but I think there's a rational argument that goes beyond altruism: It is that panics are merely one phase of a market cycle and are usually followed by recoveries.
The fact is that if you sit out a panic and continue to steep in your own fear, you'll miss the turn in the market and miss the recovery.

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