What Should You Know
If you’re not sure what to do in the current market situation, you’re not alone. Investors around the world have been battered recently, as the crisis in the U.S. housing market took on broader implications. On September 29, following defeat of the bailout legislation by Congress, the Dow Jones Industrial Average posted a record 778-point loss, making a cumulative 27% decline since reaching its highest all time closing on October 9, 2007. Over that same period, the Standard & Poor’s 500 was down 29.8%, and the Nasdaq Composite shed 30.7%. Even when the emergency Economic Stabilization Act was later passed on October 3, the markets were down sharply, on fears that this bill wouldn’t avert a severe recession. The questions on everyone’s minds are: Just how bad are the markets and the economy going to get? What should we do about it? Is it time to sell every stock we own, withdraw all of our money from banks, and bury everything in the backyard? Or are we really looking at an opportunity to purchase stocks at low prices?
The truth of the matter is that no one, anywhere, knows for certain where the economy or stock market is headed. But emotion is often an investor’s worst enemy, both on the way up and on the way down. The last stages of a bull market are often led by investors desperate to join the crowd and make fast money, often entering the market just as it is peaking. Conversely, the last stages of a bear market are often marked by losses as investors finally give up, selling stocks for fear of future declines. The way to overcome these emotions is to think calmly and rationally, refresh your perspective on the long-term and recent history of the market, review your investment strategy, and methodically analyze your current portfolio. Only after you’ve taken these steps should you consider any changes to your investments.
Vahan Janjigian is Chief Investment Officer at Greenwich Wealth Management, LLC, and Editor of the Money Masters Stock Report investment newsletter. He previously served as Chief Investment Strategist at Forbes magazine and Editor of the Forbes Special Situation Survey investment … Read More!
Hosts: Kimon Hatza, Esq. of Millcrest Law, LLP & Charlie Huntington of Biostrategy Partners Guests: Frank Merenda, CEO of EAC Valuations Listen to Show Podcast: Play in new window | Download | Embed … Read More!
Hosts: Paul Sloate of Green Drake Partners & Patricia Dunn of Merrill Lynch Guests: Chuck Steege, CFP, CEP, of SFG Advisors Listen to Show Podcast: Play in new window | Download | Embed … Read More!
Hosts: David Ebner of Merrill Lynch Guests: Charlie Shields of Wells Fargo Advisors, LLC Listen to Show Podcast: Play in new window | Download | Embed … Read More!
Hosts: Pat Welde of Merrill Lynch & Richard Sichel of Phila. Trust Co. Guests: Patricia Dunn of Merrill Lynch Click to Listen Podcast: Play in new window | Download | Embed … Read More!
Hosts: Dave De Witt of De Witt Capital Management & Jim Butler of Videre Wealth Management Guests: Robert Milnes, Energy Consultant Robert Milnes, Vice President & Portfolio Manager Bob has been working with DeWitt Capital Management since March 2011. Bob … Read More!
Hosts: Charlie Huntington of BioStrategy Partners & Kimon Hatza,Esq. of MillCrest Law, LLP Guests: Deni M. Zodda, Ph. D. of Medignosties, LLC Listen to show Podcast: Play in new window | Download | Embed … Read More!
Hosts: Brian Kohute of Guests: Dave Ebner of Merrill Lynch Listen to Show Podcast: Play in new window | Download | Embed … Read More!
Hosts: Charlie Shields of Wells Fargo Advisors, LLC Guests: Paul Sloate of Green Drake Partners Listen to Show Podcast: Play in new window | Download | Embed … Read More!
Hosts: Pat Welde of Merrill Lynch & Paul Godlewski of GEIVC Guests: Jerry Kline, Esq. of Obermayer Rebmann Maxwell Hippel, LLP Listen to Show Podcast: Play in new window | Download | Embed … Read More!