Financial Advice for Investors in the Current Economy- CBS News
Friday, June 13th, 2008The current economic downturn is causing many individuals who were once secure in their investments to take a second look at where, when, and how they invest their money, sending stock market prices down hill and adding fuel to the fire. In a recent video interview released by CBS News, SmartMoney.com Editor Stephanie AuWerter suggests a few tips to help steer those citizens in a direction oriented towards success.
June 9, 2008
“As oil prices continue to rise and people continue to foreclose on their homes, many are wondering just how bad the economy can get. However, ‘For long term investors, it really is worth noting that this too shall pass,’ says AuWerter. Try to keep market changes in perspective. While the market may be down right now, in the long run, the stock market goes up.
“To minimize your losses, use dollar cost averaging. While many people rush to sell when the market is falling, AuWerter suggests that this isn’t the best idea. ‘You’re really locking in your losses,’ she says. Your best bet is to make regular investments over time, which forces you to buy more shares when the market is down and less when it’s rising. The best way to do this? Invest in your company’s 401k.”
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