Investments are for the long term. They are not reserves for current use or protection against fears. Uncertain stock markets are the best because prices on the stocks are cheaper. There is a bonus for investors in cheap prices arising from panic selling of speculators and those not well trained to carry out investment programs. Growth stocks are one of the key elements in the three principles.
Growth stocks fall faster.
We expect a business boom and a depression to come along and help us reach this goal. This so-called Harvard Business School experiment on training new investors has produced certain other findings that may be significant to investors after Black Monday. The quickest bear market was 1962. Europe wanted the USA to convert its gold and Russia wanted missiles in Cuba. It was learned that investors are slow to comprehend the behavior of growth stocks in bull and bear markets.