Investing Tips in Volatile Markets
The last several years have been marked by volatility in the stock market and the value of your investments. One week up 700 point and the next week down 600. With all the movement, the Wall Street Journal reported that the Dow Jones ended up 5.5% and S & P was down .04% So what might you keep in mind if 2012 is similar? Your goals- investing, planning of any kind, all boils down to your goals, your dreams, your risk tolerance, your time horizon. There is no ONE rule for investing because it is an individual model made just for you. So, be clear on what you want to accomplish.The investments- Every investment has a risk, a purpose is a type of instrument. Does the investment match you and our needs? Is the investment a long-term retirement instrument when you are saving for a camp and will need the money in two years? Can the investment and it’s risk be quantified? Are there resources to learn more about it so you can feel a level of understanding about it? Allocation- In volatile markets diversification may be an option. Since there is no ONE answer for your needs this may be a good choice for you. You really need to know yourself to know the best choice for you. Discipline yourself- If your time horizon is long, once you are settled in the investment you think is best, try to stay your course for longer than the first sudden downturn. Keep your goals and vision in mind and stay disciplined. Everyone needs to follow these rules, even financial professionals, because we have feelings, too. Citations:Indicies: http://online.wsj.com/article/BT-CO-20120103-705666.htmlhttp://treasury.delaware.gov/services/Defined_Contributions/Knowledge/Investing_in_a_Volatile_Market.pdfMarion R. Syversen, MBA – PresidentNorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com Vote Norumbega Financial for Bangor’s Best Financial Planning Firm at Market Surveys of America In compliance with requirements from FINRA, all e-mail sent via the WSFG domain will be subject to review and archiving by Wall Street Financial Group, Inc. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. Norumbega Financial and all other companies listed herein are separate entities, independently owned and operated. Information herein is for educational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.