Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

If markets are declining in value, why won the General Board sell investments that are declining in value and purchase investments that are increasing in value?

0
Posted

If markets are declining in value, why won the General Board sell investments that are declining in value and purchase investments that are increasing in value?

0

Because past performance is not a predictor of future results, the General Board does not believe that selling investments or terminating fund managers based on short-term negative performance is a prudent strategy. For example, after the tragedy of September 11th when U.S. stocks saw dramatic price declines, the General Board actually increased its holdings of U.S. equities. This strategy was rewarded when the markets rebounded and stock prices rose as investors regained confidence in the months following that event.

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.