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What Should We Do Now!
Take a Deep
Breath, Step Back, and Think Before You Act
As food for thought take a look at the charts below:
2008 has been emotional time for the stock market and as a thoughtful
investor you know that emotion and the markets do not mix. Like you I have
watched my portfolio drop in value over the past few months and like you I'm not
enjoying it too much. What am I doing about it? Well, I still like the long term
prospects of my investment selections even if I am disappointed in the short
term results, my tolerance for risk hasn't changed, my portfolio remains
diversified, so I'm doing the same thing I did last year and the year before—
saving for my goals (only now I’m buying in at a much lower price!).
Steps you might want to consider:
1. Review your investment policy statement and financial
plan, remind yourself of the long term plan
2. Decide if your tolerance for risk isn’t as high as you
thought it was
3. Determine if your asset allocation has gotten out of
whack and needs to be rebalanced
4. Put your emotions aside and remember that a good long term investor buys
when the market is low and sells when the market is high and knows they can not
time the market.
If you want to review your investment or financial plan,
please don’t hesitate to make an
appointment.
What's done is done, position yourself for whatever comes next.
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