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5 STRATEGIES FOR VOLATILE MARKETS

5 STRATEGIES FOR VOLATILE MARKETS

2011-08-29

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The biggest investment mistakes are often made during market corrections and bear markets. It is not uncommon for an investor to sell too late into the decline, locking in losses, and then wait for confirmation that rebound is underway, missing out on big gains. (Short-term reversals, like we had earlier this week, often magnify the mistakes by adding to the uncertainty of where stock prices are headed.)

Conventional wisdom suggests that investors turn off their televisions, avoid the financial news and take a deep breath. It’s good advice, but I think being proactive is an even better strategy. It is certainly better for those of you who feel the urge to do something. After all, ignoring the market’s gyrations is much like dieting: it is easier said than done.

Here are proactive steps you can start taking right now to help weather the market’s storm.....





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