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Market Volatility
By Jon Menaster | July 31, 2007
The topic discussed by many an investor this week, market volatility has been at the forefront of most people’s minds since the massive losses incurred during last week’s roller coaster ride. However, as this excellent article from Vanguard points out, “It’s important, however, to tune out the media “noise” and put this volatility in perspective.” That is one of the best pieces of investment advice I’ve read in a long while. It’s so easy to watch all the news channels, read the newspapers, and get swept away in general hysteria and panic.
Most active money managers have an incredibly hard time timing the market; and those people are professionals! Whatever strategy works for you, due to the high cost of commissions I definitely recommend against trying to shift money around through buying or selling of stocks/bonds etc. Pick something and stick with it; in the long run most stocks trend higher, irregardless of intermittent market fluctuations. Read the article from Vanguard and feel free to draw your own conclusions!
Topics: Business, Finance, Investing, Retirement |