I found some sound thoughts on the CNN website today. Click the link for the entire story.
(CNN) -- With Wall Street operating on a bungee cord and economists hollering about recession, it would be easy to give into panic and sell all your stocks. But CNN personal finance editor Gerri Willis says selling now would be dropping your money in the wrong direction.
CNN personal finance editor Gerri Willis says now is the time to buy stocks.
"Don't try to catch a falling knife -- look it's an old Wall Street saying," says Willis, explaining how you will get hurt. "If you try to sell into stock rout with everyone selling, you're going to get the worst price possible."
The smarter thing is to buy low and sell high. She says you should be putting money into the market now, taking advantage of current low stock prices. She also advises dollar-cost investing -- putting in a little money regularly into the market to average out the cost. "This is the time to reduce the cost of your portfolio."
It is also a good time to check to see if you have broad diversification.
"That means you're not just invested in U.S. stocks -- domestic equities like the Dow Jones Industrial Average or the S&P 500 -- you own international stocks. You're playing a little bit in every market and you own bonds as well as stocks." |