Due to the recent sell off, Dow Jones Industrials Average off 1,000 this morning, you may be wondering what to do.
For those of you with a long term investment horizon, the best thing to do is nothing.
As long as you and your advisor have implemented a sound investment strategy, the best thing to do is to take a short term hiatus from all financial media and relax.
In my opinion, a sound investment strategy is owning a massively diversified low cost investment portfolio of stocks and bonds that encompasses all the markets and reflects your unique personality.
If your portfolio is plunging more than the market, you might want to obtain a second opinion from our firm or a qualified advisor who has your best interests at heart.
A good question to ask your advisor is the following:
"Are you acting as a fiduciary when you give me investment recommendations?"
If he or she starts to squirm, go find another advisor.
Right now, the media is bombarding us with sensational headlines that are designed to get you to click the article, stay glued to the channel and most importantly, increase their ratings.
This in turn allows them to increase their ad copy rates and make them lots of money at your expense.
To help keep your emotions in check, watch this video.
If you are still worried, give us a call and we can help guide you through a perfectly normal market drop.
Better yet, consider investing into this drop if you have some extra cash that you don't need to access for ten years or more.