While many unprecedented actions are being taken by the Fed, Treasury and SEC to ward off a disastrous global financial meltdown, it is unlikely that investors are completely out of the woods just yet. The intricate and highly complex web of the financial and banking systems is just beginning to get unraveled. And in the next few weeks we will see how deeply connected all these firms really were.
This is the time to really look at your investments and ensure that you are appropriately diversified. Global diversification is still the best defense for investors.
Has the market hit bottom? No one knows. This is why timing the market does not work. As investors we must have a long term view and remain focused. History has demonstrated that those investors with a well diversified portfolio that stay invested in the market fair much better than those who sell their positions out of fear and re-enter the market when it's already rallying.
Read Are You Investing or Speculating by Karla Arguello to learn more.
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