Five Strategies for Investing in Uncertain Times

investmentwoesWe are living in an economic turmoil. With large companies failing at a daily rate, how can the “little guy” know where to invest the hard-earned dollars they have worked so hard to accumulate?  You want to succeed, but you aren’t sure of what you need to do and if that decision is the right decision.  One of our readers, thankfully, offered us this financial advice for those of us who are betwixt and between sorting out the bear from the bull.  Take a good look and get a stronger footing on your own financial success!

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number1Do not jumping in and out of the market.
To have perfect timing during any bear market is very difficult. Investors not getting in and out at the right time can result in buying high and selling low. During bear markets results are far from subtle. They tend to be more like riding a roller coaster. And yes, it can cause motion sickness and can make you want off too early.
number2Get professional advice.
Review with your adviser investment goals, time tables and tolerance making sure they are still appropriate. Resist making decisions on the advice of friends or from sources nor specific to your goals, time tables and risk tolerance.
number3Continue to invest regularly.
Dollar cost average: bear markets are a wonderful time to buy stocks on sale. Investing a set amount monthly is the best way to take advantage of dollar cost average.
number4Stay with a diversified portfolio.
Consider selecting a mix of mutual funds within the same fund family to spread your risks. Also liquid investments within a money market equal to 6-8 months income for emergency short-term needs.
number5Keep a long-term perspective.
In a downturn it is not easy to hold steady, especially when it seems like the market decline will continue. But if your investment goals have not changed, your strategy should not. Even when the statement is hard to look at.
Who knows if the current recession will be similar to past recessions or even how long it will last. We do know that history has shown us longer, enjoyable, and meaningful positive periods will come. Take a deep breath. Don’t panic. Your reaction to an inclines or decline is more important than the incline or decline itself.

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Submitted by Tracy Swarthout