Boulder City Magazine® December '08/January '09 Issue
by Wendell Whitman
Look For Post Election Investment Opportunities
Now that the presidential election is over, many people will again focus on the economy and their investments. By looking at the current state of affairs, you may find that the situation is more promising than you thought.
Boulder City Magazine®
|For one thing, we’ve seen a steady drop in the interest rate that banks charge each other for short-term loans. As this rate drops, credit starts to flow more smoothly - and that’s good news for financial markets and investors.
Here’s another potentially positive development: Much of the bad economic news may already be reflected in current stock prices. As a result, high-quality stocks have some room to grow and may provide attractive long-term returns.
These are challenging times for investors. But if you stick with a disciplined investment strategy that’s appropriate for your individual situation, you can continue to make progress toward your important financial goals.
A “Checklist” For Surviving A Financial Crisis
What can you do to cope with the news of the past few weeks? Consider the following “checklist” for surviving a financial crisis:
First, focus on things you can control. For example, you can control your emotions so that you aren’t panicked into making unwise, short-term decisions. Panic is not an effective investment strategy.
Next, review and rebalance your portfolio. During this market decline, some of your holdings have probably fallen more than others. This may mean that you now own a lower percentage of some assets than you had originally intended. Consequently, you may need to make some adjustments.
Also, look for quality investments. In a difficult economic environment, you’ll want to own stocks of companies with strong balance sheets.
Finally, be patient. History has shown that turnarounds can happen quickly and unexpectedly. The most successful investors stay the course and take advantage of opportunities while others are “bailing out” of the financial markets.
Contact Wendell at Edward Jones www.edwardjones.com.
P.O. Box 61901
Boulder City, Nevada 89006
Phone (702) 294-1392 Fax (702) 294-1392
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