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by Chris | I started in this business in 1985, and I have never witnessed the severe volatility that we are enduring now. Please understand that the stock market is cyclical by nature. It appears that these cycles are compressed by time and magnitude.
From the anecdotal information that I have collected, these swings in the market place seem largely driven by the large institutional companies (brokerage firm trading accounts, hedge funds, etc) not by the individual investor.
Most companies that are falling in value are not going out of business. Their earnings growth may be slowing (or worse), but how many companies have gone into bankruptcy? Not many. Is our economy going into a depression or recession?
I doubt if we are headed to a depression; a recession is possible, but it is not a death blow to your investment account.
As an individual investor, what should you do? The answer lies somewhere in between your risk tolerance & time horizon. Carefully review your asset allocation and use this time to evaluate your risk tolerance. Everyone is moderately aggressive when the market is going up, but when it goes down are you still moderately aggressive?
As you review your investment plan, don’t buy or sell stocks out of the feeling that ‘you have to do something’. Step back, talk to your adviser, review the history of these events and be clear about your decisions. In addition --
- Continue to focus on the long view.
- Don’t obsess about the markets – that’s what I do.
- Do tell your friends, family & co-workers about me.
- Call or email me with your questions or concerns.
Christopher J. Conner
Certified Financial Planner TM
Certified Fund Specialist
Managing Director
5200 W. Newberry Road E-7
Gainesville, Florida 32607
352-225-3132 (Fax) 352-225-3784
Cell 352-281-4646
Other Posts by Chris:
* What the Dow Jones Industrial Average Means to You
* Financial Planning New Year’s Resolutions Part II: for People Over 50
* Financial Planning New Year’s Resolutions Part I: for People 50 & Under
* The Social Security "Crisis" of 2008
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Christopher J. Conner, SVP
Certified Financial Planner ™
Certified Fund Specialist
Cornerstone Financial Group
4131 NW 28th Lane Suite 7
Gainesville, FL 32606
(352)378-7456 Office
(352)281-4646 Cell
(352)378-5759 Fax
Prosperity through excellence
Advisory Services offered through Jonathan Roberts Advisory Group.
Securities offered through J.W. Cole Financial, Member FINRA/SIPC
6928 W. Linebaugh Ave., Ste. 101Tampa, FL 33625 (PH) 813-935-6776
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