11. The Bailout Is A Bargain
"The truth: No one's paying new taxes directly related to the bailout. And most of the government rescue packages offered to the banks have gone untapped or are being repaid."
This is a no-nonsense article posted April 23, 2009 by journalist David Weidner of the Wall Street Journal Online. It goes hand in hand with the thoughts I outlined in my article Deficit Spending Explained In Plain English.
12. The 7 New Rules Of Financial Security
These should have been the rules all along; better late than never! Authors Carolyn Bigda and Paul J. Lim of Money Magazine lay out the rules we all need to be following when it comes to investing. It starts with this one:
Rule No. 1: Risk
Old thinking: If you can stomach the ups and downs that come with risk, you'll be rewarded. New rule: Risk isn't about your stomach. It's about making or missing an important goal.
Posted on CNNMoney.com.
13. Case Closed: Stocks Work
"If past is prologue, returns over the next five and 10 years will be better than average -- so don't give up yet," says Gene Epstein in this Barron's article published March 11, 2009.
He goes on to say, "With the stock market in the throes of yet another near-death experience, another rebirth could be in the offing," and supports his comments with solid data.
His point is well made, but if you can't handle the volatility of the stock market, and hold on for 20-30 years, than perhaps the roller coaster ride is not for you. Long term returns are great, but only if you can sleep at night.
14. How Low Can The Market Go?
"On days like today, it helps to look at the silver lining. Here it is: The farther stocks fall, the cheaper they get--and the higher the expected long-term return becomes. Unfortunately, that doesn't mean we don't have a long way to go on the downside," says Henry Blodget on Yahoo's Tech Ticker on March 2, 2009.
This internet page contains a video, chart and article that give you a realistic analysis of how low things could go before they recover.
15. New Lessons From The Crash
"Every major market crash is considered a teachable moment. And the lesson for investors invariably centers on the risk of overreacting to the news, in this case by attempting to flee equities when they're down." says author Joe Light.
"But this is not what many financial advisers are calling for this time. In fact, they say it may be well worth your while to pay close attention to what's going on in the market today..."
This article by Joe Light was posted to CNNMoney.com on 2/17/09.
16. Market Predictions - Who Got It Right?
As Einstein said,"Great spirits have always encountered violent opposition from mediocre minds."
The market predictions voiced by these academics, often in the face of violent opposition, turned out to be uncannily accurate.
It doesn't mean they will always get it right going forward, but we can all learn from listening to what they had to say, and paying attention to their views going forward.
17. How Not To Ruin Your Life - More Lessons From The Financial Crisis
"Because the past 15 months have been by far the most upsetting time period of many investors' lives -- including mine -- I am continuing to examine the lessons learned from this crisis" says author Ben Stein.
The back testing and portfolio propositions did not foresee a massive loss of confidence thanks to catastrophically wrong government moves. Thank you, Henry Paulson, for teaching us humility. Those disastrous moves told us we need to rethink our whole investment approach."
This article by Ben Stein was posted to Yahoo on 1/5/09.
18. Maybe Investors Should Buy, Buy, Buy and Hold
Increased savings can help your portfolio recoup at a faster pace, author Paul Lim explains:
"What’s the best way to recoup losses suffered in a bear market?
For most of the past quarter century, the answer was simple. All you had to do was hold stocks and wait for the next bull market.
But if investors need their portfolios to climb back to pre-bear levels anytime soon, just staying put may not be enough this time. In fact, painful as it may seem, it may be necessary to sock away more money, if the goal is to return to even in the next couple of years."
This article, written by author Paul J. Lim, was posted in the New York Times on 12/20/08.
19. How Long Will The Recession Last?
A level headed approach to looking at this recession, as the author states:
- "There are good reasons to be worried...as the headwinds facing the economy are powerful indeed. But it's best to resist the temptation to give in to predictions of unconditional gloom and take a cool-headed look at how this recession compares so far to the many other downturns we've survived."
This article, written by author Anthony Karydakis, was posted to FORTUNE on CNNMoney.com on 12/3/08.
20. 5 Ways To Tame Your Market Fears
Great article with statements like:
- "Once you have a goal and a strategy, put it in writing. So-called investment policy statements are meant to help you stand your ground in the face of the daily analyst rants on CNBC."
- "Treat this policy as a contract. When the stock market dips, pull it out, read it over and remind yourself that you've vowed not to react to every swing."
- "If the market tanks, turn off the TV and definitely don't check your portfolio, says psychologist Peters. You need only peek once a year so you can realign your allocations to fit your desired mix."
This fabulous article was posted to Yahoo and provided by CNNMoney.com author Joe Light on 11/24/08.
