Methods To Stay On In A Time Of Market Troubles Part 2

Switch off the news channel

The investment success always depends on that how much good you an overall picture, without distracting on various noises in the market. Daily financial news practically always creates this noise. It is their work – to consider any splashes in value of indexes and to betray it great value in spite of the fact that the weight of researches shows that day movement of shares casually or, at the best, is differently direted.

Thus, switch off the TV. I try to avoid fascinating news about day fluctuations of index DOW – tells David Hirshlafer, the professor of the Californian University in Irvine. Falling is strong reaction to any bad news, but thus news during time is already reflected in low prices.

Before to make important investment decisions, be convinced that you were influenced by spontaneous feelings which have appeared reaction to news noise.

Read good books

Some acquisitions are perspective on a bear market. After all, they always come to an end; though now look as a financial trouble. In view of that there are some good books.

Begin with the book “Your Money and Your Brain” Jayson Zweig – before he was the author “Money Magazine”. In it is told how not to turn away and to ruin the dreams.

The following book is “The Little Book of Common Sense Investing” which author is the founder «Vanguard», John Bogl. Mainly the book is devoted how correctly to choose index fund for investment, it also will teach how to behave in a time of trouble.

All of us know that investment is connected with risk” – writes Bogl. “But all of us also know that without investments we are doomed to a financial failure”.

Make sure that your cash is really in safety.

Essence of transfer of a part of your portfolio in cash – that is in deposit certificates, on bank money market deposit accounts or in the investment funds of open type putting means in short-term obligations of a money market – to protect them. Thus, there is no reason to subject this money to financial risk.

Unfortunately, investors who have hidden the means in “cash equivalents”, have found out that it is impossible to count on bigger income, without increasing risks.

The short-term bonded funds sometimes used as replacement to money market funds, decrease this year on more than 1 %. Super short-term bonded funds have lost almost 3 %, partially because of crisis on a mortgage market.

Nevertheless, you don’t need nonconventional accounts to earn decent incomes. Possibly, soon rates will lift and also the percent on money market funds which today is approximately 1.9 % can also rise.

It is very crucial that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other types of grants has become harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please make sure to check out this blog for more
details about grant industry.

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