DISQUS

Laura · 1 year ago

Q: What's the hardest thing for people to do with their investments right now? A: Nothing. Psychologically, that really hurts. I suggest if you're feeling the need to do something -- anything -- you should increase your contribution just a bit. (I did, and I feel better.)

Frank · 1 year ago

Laura, that's the best advice of all. That is really smart...sit tight and save more. WTG.

Ron Ulrici · 1 year ago

Darn, I hate being the voice in the storm! I can't give advice to anyone, because I'm putting my few bucks in my mattress. Maybe it's my age, but I'm not convinced that we're coming back from this mess soon. If you're twenty or thirty-something, you probably are better riding it out...

Alex J. Avriette · 1 year ago

I may be the only person to say this, but think of it this way. The entire market is on sale right now. I bought AAPL for $12 in 2002. 52-week high is $202. Do the math. The only thing that should prevent you from pouring as much as you can into your 401k, especially if your employer is matching (free money, folks, there is no reason to avoid free money, ever), is the notion that the entire world economy will collapse and the stock market will be worthless.

Sure, it happened to the Romans, but I'm not certain there's a Mehmet II knocking at our door just yet.

Right now might not be a good time to invest in the traditional "stable" stocks (stocks with a beta of 1), but it might be a good idea instead to invest in stocks you know will a) not be controlled by the government and b) have inherent value that is presently devalued. An example might be AAPL, of course – they're not going anywhere in the ten year timeframe, but retail's going to hurt this christmas – or TIF for the same reason. Consider also some of the more esoteric mutual funds like FOSFX. Funds that deliberately invest in devalued, risky markets.

But that's just sound financial advice. Invest in, say 50% "reliable" stocks, 25% "growth" stocks, and anywhere from 10-25% "risky" stocks that may drop to zero, or may quadruple in value.

But whatever you do, don't drop out of the market because that is the only way to ensure somebody like me will come along and buy up your stock and cement your loss. When you do get back in the market (and you will), and the prices are "normal" again, you've lost that 40% or more that the stock rose.

Hint: limit orders.

Totally Consumed HR · 1 year ago

Well said, except for the uncle part. I have very smart uncles, so maybe mine are the exception rather than the rule.

Frank · 1 year ago

LOl, yeah, some uncles do know what they're doing. You're right...listen to them, but stay away from knucklehead uncles.

Mitch22 · 10 months ago

Thanks. Very encouraging words. It’s tough to stay even keel in this market.Mutual Funds for Young Investors