A Yahoo! Finance article entitled “What’s an Investor to Do Now?” gives some good advice on how the novice investor can weather the current financial storm. The article encourages attention to three main points:
Review: Check your portfolio. How diversified are your funds? A sound portfolio is one spread over all types of assets and markets, in addition to being heavily rooted in cash. Markets may be tough now, but this fundamental investing principle has carried many people through rough waters.
Timeline: Be mindful of your own specific time frame. If you are more than a decade from retirement, it seems safe to assume that many purchases made during this time of crisis (and bargain-basement prices) will eventually work in your favor over the long term.
Risk Assessment: What kind of investor are you? If the current troubles being experienced by our nation are too much for you to handle, perhaps this is not your time. Those able to look past a dangerous market and agressively invest with confidence, while still remaining cautious, can actually benefit from such a crisis over the long-haul. Take a deep breath, and realize that we are not witnessing the end of the world.
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