Economic turmoil seems to be the buzz word in today's time. The stock market has had unprecedented gains and losses. Intraday wild swings have been so dramatic, it would make even the most avid roller coaster rider nauseous. Many people are wondering what do to. Should I pull out of the market? Should I buy more stocks? Should I just wait and see? What impact will this have on my job, my home, my quality of life? And of course the big question everyone is asking, have we hit the bottom? One thing is for sure, trying to time the market is like trying to cut your finger nail with a machete: there's a slim chance for success and failure can be catastrophic. Consider this, if you jump out of the market when it was at its lowest point, you would have effectively locked in your losses and would have not benefited from any of the gains the market made up over the next few days. So what should one do in these times of uncertainty. For one, stop panicking. One of the main reasons the marketing is moving so violently is because of low investor confidence. Don't add fuel to the fire. Now is an excellent time to invest for your future. Since when has buying at a discount been a bad thing? Stock prices are extremely low, home prices are the lowest they have been in many years. The government is pulling all punches to keep the economy going. If you plan properly, you can be the victor when all is said and done. If you follow these few principles, you will navigate through this storm on a wave of economic enlightenment:
•1. Don't pull your money out of the market. Remember, if you did recently, you would not have been able to see the record gains over the last couple days.
•2. Start buying discounted stocks. Talk to your broker or do some research on stocks that have solid financials and management but are taking a beating simply because of the current crisis. The goal is to buy low and sell high, not the other way around.
•3. Consider buying a home or two. The prices of homes are at a bargain right now. The number one method to build wealth is real estate. It always has been and probably always will be. Do this only if you are financial able to however.
•4. Live within your means. Don't let the heavy weight of debt keep you from enjoying life.
•5. Diversify. Have your money in money markets, stocks, bonds, mutual funds and real estate. The best way to protect yourself from major losses is to have a well balanced portfolio based on long term objectives.
For more information regarding the current economic crisis or if you are interested in securing some below market real estate assets, please feel free to contact us at info@eraexecutives.com
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