With headlines like “It’s a Very Nervous Market as Fear Grips World Economy”- what will you do?
January 20, 2011 by
Filed under Silver Investment FAQ
with your investments?
If you are a financial advisor, what are your recommendations?
More headlines:
“Gold and other metals end with sharp losses
Silver ends down 8%, copper is down 7%, palladium down 6%”
“Stocks get pummeled again”
“Central Banks are not Stopping Credit Crisis”
sounds like you dont have a financial advisor…
sometimes people are worth what they charge… sometimes not… but it’s ties like these that they earn their keep.
call e-trade and see what sort of educated guidance you get.
people complain about the high fees of advisors and then want service… service and guidance are the what the commission charge is for … not for the simple transaction of the stock purchase.
First, bear in mind that newspapers need to sell their print versions. Also remember that they need to be noticed among all the different print companies. Hence, sensationalism is common, and couching what happened in the markets in very grabbing language is also a norm.
Second, I will look for opportunities in such markets. Everyone feels good and confident when the markets are going up, but the risk is higher when you buy in a bull market, compared to a bear market.
Third, think through whether you are investing in the long term, or tapping on short term opportunities. Remember that people are emotional beings. We may make good decisions but we react badly to such events when it runs several days in a row.
What will I do? I will dollar cost average and invest the same amount each month. I will have some bonds 10%, some international 10% and everything will be in index funds with ultra low costs. I will invest for the long run and get my 8-12%. I will have faith in the strongest nation in the world, and I will ignore all those hyped up headlines designed to get “hits”.