What's the one thing individual investors should keep in mind during these turbulent times?
Tim Hanson, senior analyst at the Motley Fool: Don't panic. While this may seem like a once-in-a-lifetime event (and in its intensity, it's getting close), the fact of the matter is that the stock market cycles through boom and bust every eight to 10 years or so. Our economy has a 100 percent record of recovery, and though it will take some time to sort through this housing/credit/economic crisis, we'll get there in the end.
So, stay stoic with your money and be careful not to let emotion trump your sound long-term, asset-allocation strategy. If you don't have an asset-allocation strategy, now is a very good time to put one in place.
If you're young, that means sticking with the stock market and buying more stocks today. If you're closer to retirement, that means making sure you're protecting your principle by owning something like Treasury Inflation-Protected Securities, or TIPS.
October 8, 2008; 7:00 AM ET
Categories: Your Pocketbook | Tags: investing
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