Posted by Tim Stobbs on August 17, 2007
The blogsphere seems alive and well with advice on what to do about the current market situation. So I’m going to provide a few suggestions.
- Doubt will happen. It is normal and don’t worry about it. I don’t think there is a person alive who watch the TSX index drop 1500 points without any emotion. My wife, who doesn’t doesn’t follow the investments like a do even managed a “Ouch” while watching the news this week.
- Investing in your cash at the bottom is ideal, but hard to predict. So for individual stocks, perhaps pick a good entry point and set your buy order at that. Then just accept you did the best you could if it goes lower. For the index itself, you could just pick an entry point or try to hit the upswing back up. Yet with the market going sideways some days either case will be hard to do.
- Stop following the news. Really this helps. Go on vacation for a week or just refuse to read the news. You will feel a lot better about everything since you will not follow every little dip and surge. We are in this for the long haul remember.
- Keep busy. File your paperwork and cut some red tape. Keep busy with other items to keep your mind off the situation.
- DON’T SELL. This is perhaps the most important suggestion. Don’t do a panic sell. You will regret it once the market springs back.