The stock markets are up and down like a very big yo-yo and we’re bombarded by talk of recession daily. We as investors are left to deal with it and somehow make sense of it. The fact of the matter is I don’t think most of my readers are active investors, they know to invest their money and to save for a rainy day but I don’t think a great many of them know the ins and outs of the planned bailout. I know I don’t. So where does that leave the majority of people? How are we supposed to survive in this turbulent economy?
Stay calm and don’t panic.
Panicking and pulling your investment when they’ve lost a good deal of money isn’t going to help anyone least of all you as the investor. If you stop and think about it yes we might be in some tough economic times but how likely are they to continue forever? The simple answer is not very. I know people will argue about the stock markets continuously making money but statistics really does back this claim. Using this logic if you pull your money out you’ll loose it.
Patience is a virtue and although you might end up loosing money in the end by being calm and letting the economic front settle a little you can save yourself a great deal of grief. Panicked selloffs are part of the problem that some of these banks are encountering; people are worried about their money they pull their investments and pull out their cash leaving banks with little reserves.
The economy will balance itself out.
If you don’t understand what’s going on in the economy educate yourself before making a large move with your investment money. The economy will fluctuate and this isn’t the first nor the last time we’ll encounter a recession. When the Dot Com bubble burst lots of people lost their money and it will be no different this time but this doesn’t have to happen. Be patient and if you don’t understand what’s going on to feel comfortable speak to an investment advisor.
Listening to the media is dangerous.
Newspapers and new sources are expected to sell their information, this has always been the case. Because of that these sources are always vying for the best story and most sensational headline to grab peoples attention. Unfortunately this doesn’t always convey the truth of the matter. Question what you read, especially if its highly sensational and rely on experts when you don’t know what to do. If you aren’t’ comfortable with what your investment banker is saying get a second opinion.
Stay calm, don’t panic and you’ll probably save yourself a lot of money.