Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
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Fear: Stock Market Crash
June 6, 2009
While visions of the Nasdaq tech crash still haunt some of us, the reality is, your biggest worry should be
getting mediocre returns from your investments. People often abandon the buy-low, sell-high principle
when they need it most. Good markets make many investors feel invincible so they don’t sell or
rebalance. When markets decrease and prices are low, investors get scared that they will lose out on
potential gains. They jump ship figuring a small return is better than none but ignoring the potential upside if the stock price rises again.
Diversification and dollar-cost averaging may help you avoid mediocre returns. By making sure your portfolio is invested for the long haul across a variety of markets, countries and investment vehicles, you may reduce your risk exposure and potentially open yourself up to more than mediocre returns.
By: www.themoneyalert.com
Posted by Judith Gerhart on June 6, 2009 | Permalink | Post a comment
Topics: Finance |
