Patience is the Key to Investing
This past week has been a real test for investors. Particularly those that are long term investors. With the markets showing deep red the last couple of days, it's easy to lose sight of your long term goals.
Before hitting the bail button and selling all your stocks and moving to money markets, one should carefully assess what their objectives are.
If you are a short term investor, you should be well aware of the risk of placing money in the markets. If capital preservation is the main concern, a money market fund or fixed income would be the best choice at the expense of growth.
Those with a longer term investing horizon should still think long term and should avoid feeling down. Everything will be fine in the long term. Just hang in there especially if you have solid stable blue chips in your portfolio. If your portfolio is filled with hot stock tips and penny stocks, I can't offer much advice except to say - be prepared to weather the extreme highs and the extreme lows. I hope you can sleep at night!
For me, what I see today is a market that is unfairly valued one that has been beaten up. Take a look at Intel (INTC). The stock has fallen dramatically every day even though the underlying fundamentals have no changed. So what does one do in a situation like this? For me, I sense a good buying opportunity. On Monday I will likely add more INTC and C to my portfolio.
Stay tuned as I will be writing up Citigroup (C) in an upcoming post.
Before hitting the bail button and selling all your stocks and moving to money markets, one should carefully assess what their objectives are.
If you are a short term investor, you should be well aware of the risk of placing money in the markets. If capital preservation is the main concern, a money market fund or fixed income would be the best choice at the expense of growth.
Those with a longer term investing horizon should still think long term and should avoid feeling down. Everything will be fine in the long term. Just hang in there especially if you have solid stable blue chips in your portfolio. If your portfolio is filled with hot stock tips and penny stocks, I can't offer much advice except to say - be prepared to weather the extreme highs and the extreme lows. I hope you can sleep at night!
For me, what I see today is a market that is unfairly valued one that has been beaten up. Take a look at Intel (INTC). The stock has fallen dramatically every day even though the underlying fundamentals have no changed. So what does one do in a situation like this? For me, I sense a good buying opportunity. On Monday I will likely add more INTC and C to my portfolio.
Stay tuned as I will be writing up Citigroup (C) in an upcoming post.
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