After the S&P downgrade of the U.
S.
Credit rating, stock and commodity markets sold off sharply, dropping nearly 15 percent before recouping losses at the end of the month.
Between the negative news and weak expectations for the U.
S.
economy, the ongoing problems in Europe, market volatility, and general unease, many investors are asking themselves if they should just abandon investing all together and simply put all their money in CD's and Gold.
The answer, albeit long and complex, can be summarized with a simple NO! Let's be clear, investing in stocks, bonds and commodities requires patience, time, and the willingness as well as the ability to accept market volatility and risk.
You should not invest monies that you believe you might need over the next year or two, and should invest very conservatively (short-term bonds and CD's) with monies that you may need over the next 5 years or so.
However, whether it is a 401(k), IRA, or other investment that is designed to be there for you "down the road" - 10 years or farther - you should consider investing.
Much has been said about the fact that investments into the S&P500 (index fund or ETF) in essence made no money in the first decade of the century.
Given the current state of affairs, more questions are arising on whether or not this decade will be "lost" as well.
Anyone who read our newsletter or attended one of our seminars has heard us say that "buy and hold" (at least in the old way) simply doesn't work anymore.
We're quite sure it will again at some point, but for the foreseeable future it is very unlikely to yield desired results.
You have to make adjustments to your investments to reflect the changing economic and market conditions.
If you are unable or unwilling to do the work yourself, you need to work with an advisor to help you with this.
Times are difficult for investors, for the economy, and certainly for the many unemployed.
Acting or, even worse, reacting emotionally as opposed to thoughtfully has rarely worked in the past, and is unlikely to work going forward.
As September goes, we expect more market volatility but also are quite optimistic that the recent sell off is overdone and that careful, smart, patient investors will be rewarded by years' end if they stay disciplined and follow a well constructed investment program.
S.
Credit rating, stock and commodity markets sold off sharply, dropping nearly 15 percent before recouping losses at the end of the month.
Between the negative news and weak expectations for the U.
S.
economy, the ongoing problems in Europe, market volatility, and general unease, many investors are asking themselves if they should just abandon investing all together and simply put all their money in CD's and Gold.
The answer, albeit long and complex, can be summarized with a simple NO! Let's be clear, investing in stocks, bonds and commodities requires patience, time, and the willingness as well as the ability to accept market volatility and risk.
You should not invest monies that you believe you might need over the next year or two, and should invest very conservatively (short-term bonds and CD's) with monies that you may need over the next 5 years or so.
However, whether it is a 401(k), IRA, or other investment that is designed to be there for you "down the road" - 10 years or farther - you should consider investing.
Much has been said about the fact that investments into the S&P500 (index fund or ETF) in essence made no money in the first decade of the century.
Given the current state of affairs, more questions are arising on whether or not this decade will be "lost" as well.
Anyone who read our newsletter or attended one of our seminars has heard us say that "buy and hold" (at least in the old way) simply doesn't work anymore.
We're quite sure it will again at some point, but for the foreseeable future it is very unlikely to yield desired results.
You have to make adjustments to your investments to reflect the changing economic and market conditions.
If you are unable or unwilling to do the work yourself, you need to work with an advisor to help you with this.
Times are difficult for investors, for the economy, and certainly for the many unemployed.
Acting or, even worse, reacting emotionally as opposed to thoughtfully has rarely worked in the past, and is unlikely to work going forward.
As September goes, we expect more market volatility but also are quite optimistic that the recent sell off is overdone and that careful, smart, patient investors will be rewarded by years' end if they stay disciplined and follow a well constructed investment program.
Source...