The old saying that home prices never fall obviously wasn't true. But in the following video, Fool contributor Matt Thalman discusses why the "strategic foreclosure" may not have been the smartest thing to do for the millions of homeowners who could afford their monthly mortgage payments but decided to walk away from their homes just because they owed more than the homes were worth.
Matt turns this idea toward the stock market and explains why it's not good for investors to walk away from their losers simply because the share price has fallen below the amount they initially paid for the stock. Just because we lose paper profits in the short term, Matt says, doesn't mean we should give up on our long-term investments if the companies are still performing. If we did, we'd all end up living in the poorhouse.
Check out the video for more details.
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