Monday, January 29, 2007

Managing Turbulent Markets in 2007

The stock and bond markets will be turbulent in 2007. Typically investors make stupid mistakes in volatile markets by selling at the bottom and missing the next run up. It is always important to behave rationally and not market time.

Here is a link to a paper by Blackrock that specifically addresses how to manage your investments in a turbulent market.

http://literature.blackrock.com/eStudioContent/public/TurbulentMarkets.pdf?PubDate=/1_29_2007_TurbulentMarkets.pdf

Remember, the markets are always irrational in the short term so take the rational long term perspective when managing your portfolio.

The Financial Pragmatist
Libby Mihalka

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