Is Staying the Course the Right Plan?
One of the world's largest investment managers is Capital Research and Management, which oversees the American Funds. Jim Rothenberg, Chairman and Principal Executive Officer of the firm, recently warned of the emotions of the moment distracting investors from their purpose. His comments include a look back at one of the darkest moments in U.S. history:
"In April 1942, we were at war and we were losing. Germany had overrun France. Our Pacific fleet had been crippled at Pearl Harbor. Inflation was rampant. Companies faced wage and price controls and excess profit taxes. In that bleak month, with no clear or compelling reason, the market simply reached the bottom of a long downturn and started to rise again. By the end of June 1943, the Dow Jones Industrial Average had gained 54%."
For the full text of Rothenbergs comments, please click here.