Yesterday was a scary day for quite a few people as they saw their assets and retirement funds plunge. The news outlets don't exactly help, forecasting gloom and doom and terror. In fact, if I hear one more comparison to The Great Depression, I'm going to scream. How many of you are starving, homeless, job-less? You may not be living as comfortably as you once were, but compared to 95% of the rest of the world, you're living like royalty. However, that doesn't mean it's easy to watch all those supposedly sound investments crumble (I'm talking to you, Apple...). Here are a few free stock tips, courtesy of yours truly.
1. Don't panic!
The absolute WORST thing you can do is take your money and bolt. Yes, it may not look good, but the market will bounce back. If you have at least 5 years left before you were going to use your money, then leave it where it is. Getting rich on the stock market is NOT a quick thing. Patience, grasshopper!
2. If you have the extra cash, invest.
You know that old adage, "Buy low, sell high?" This is a buy low time. But be careful. Invest in reputable companies that have solid histories and plans. Don't buy the hottest thing. By the time you hear what the hottest thing is, prices have already gone up.
3. Diversify.
It's the classic strategy. Yes, I might have lost 20% of my Apple stock, but that Wells Fargo stock I decided to buy when the housing market crashed has gained 30% since my original investment. The more kinds of stock you buy, the safer you'll be. You're not a psychic. You can't always predict what's going to take off and what's going to bomb. But if you make sound, strategic investments in a host of different companies, you're odds are much better that you'll come out ahead.
I don't know all the answers. I don't even know all the questions. In fact, I might have to change the strategies tomorrow. But keep your head, and wait it out. You'll be one of those who makes money off the crisis when everyone else bails out!
