Thirty years ago, Fidelity Investments Vice Chairman Peter Lynch revealed a common psychological misconception in the investment market. He stated, “More people are losing money by waiting for a pullback.”
In a 1997 interview, he pointed out: The real enemy of the average investor is not the market decline itself, but missing out on profit opportunities due to fear of market drops. Lynch believes that, as an ordinary investor, you should not predict the market, but ask yourself: If my position drops by 10%, 20%, what would I do? Can I withstand it? If not, then you should immediately reduce your holdings.
Peter Lynch’s investment advice from 30 years ago still applies today.
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