You couldn’t lose. Your company stock only went one direction: UP…
…until it didn’t. Now you’re gonna hold on until it “bounces back.”
Here’s how that could just cause more pain.
First a history lesson…
20 short years ago, the tech bubble burst.
Even if you lived through it, you may look back with rose-colored glasses. So here’s the reality.
The NASDAQ Index (the proxy for tech stocks), peaked in February 2000. Then the pain set in.
It would take almost 14 YEARS before it got back to its pre-bubble levels.
Meanwhile, the S&P 500 was back within 7 years.
What’s even MORE interesting is that it would take 19 years for the NASDAQ to catch up to the S&P 500’s total return over those two decades.
So it’s not a question of whether your horse will cross the finish line. It will.
The question is if your horse will cross the finish line first, last, or in the middle.
No one can predict THAT future.
That’s why it’s better to own the racetrack.
So talk to your financial professional about diversifying even if it hurts right now.
And you can lick your wounds with the knowledge that all that unvested stock that’s not yours yet will still participate in the upside if you’re horse does come in first place.
