Following Herd Out of Market Will Sting in Long Run

No reason stocks won't be back: economist
By Jim O'Neill,  Newser User
Posted Oct 13, 2008 11:24 AM CDT
A trader rubs his head as he works on the floor of the New York Stock Exchange, Oct. 8, 2008.   (AP Photo)
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(Newser) – Ready to pull the plug on the stock market and put all of your money under the mattress? Princeton economics professor Burton Malkiel writes in the Wall Street Journal that you’ll be better off riding out the storm. “No one has consistently made money by selling America short, and I am confident the same lesson is true today,” he says.

Malkiel says the herd mentality of Wall Street that’s led to massive selloffs is an overreaction. Smart investors, he argues, will stay in the market, ride out the slump, and be better off in the long run. “Investors who bail out of equities during times like these are almost always making the wrong decision,” he writes.