How to Deal…
So here it is, the second week of January in the year of 2009. Looking forward dread seems to be the only outlook. Jobs everywhere are being slashed. Investments have washed away. Credit lines have decreased. Fantastic interest rates now available for home loans that seem all but impossible to attain. Foreclosures are everywhere.
So what do we do? How to move forward and not just accept the bludgeoning that is forced upon us?
Dig deep. Determine an investment strategy that will work in this new economic system. Here is what I see. Buying individual stocks seems like an unnecessary risk in this new paradigm. Buying baskets of stocks or indices which provide broad diversification of risk seems wise. If an investor has any cash leftover, which in itself is a small miracle; this would be a potentially positive time to begin a slow investment approach. I emphasize, slow and steady, avoid lunging into these still troubled waters. Look at the various closed end funds and ETF’s for options going forward.
The idea is that investments are long term. Investments made today may prove to be worthwhile in the years ahead. Looking for immediate returns may be futile but a long range plan could be successful.
Again…Enter this market with caution and only then, piecemeal
