Tuesday 12 August 2008

Market is falling, now what?

In this wake of the political drama after the rise of oil prices and now the turbulence of the stock markets. The world markets are crazy, the outlook is dicey, but there are also plenty of ways to profit, if you keep your cool.

So what can I do? Do I sell my funds? Do I buy? I have butterflies in my stomach….

Here's some quick tips:

1. Focus on you're a long term goals and practice dollar cost averaging.

2. Use the buy-and-hold principle, the funds will generate reasonably good returns over the medium to long term.

3. Don't time the market, as we will be exposed to much higher risk.

4. Practice of portfolio allocation or asset allocation will give us potentially higher returns whilst reducing our risk.


For further information, do read this excellent article on how you can keep your cool in a volatile market situation.

http://www.publicmutual.com.my/page.aspx?name=art_remaincalm_pg01


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