11. 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.
12. 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.
13. 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.
14. To See The Market Turn, Open Your Eyes
"The billion-dollar question on every investor's mind is, when will this market truly turn?" asks author Sham Gad.
Any sort of rally over the past two months has been a short-term reaction to specific market news. Sure, credit is tight, but mounds of money are sitting on the sidelines that will ultimately find its way back into the markets.
It feels good now to earn a zero real rate of return when the markets seem to do nothing but offer negative returns. Such feelings will change, and when they do, the money will slowly come back to equities, which are historically the best creator of long-term wealth."
This article, written by author Sham Gad, was posted to Yahoo on 12/30/08.
15. 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.
16. 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.
17. 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.
18. Buy American. I Am.
"The financial world is a mess, both in the United States and abroad.So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds.Warren Buffett contributed this fantastic article to the New York Times on 10/16/2008. Take the time to read it and gain insight into how one of the greatest investors of all times thinks.
19. A Manual for Scary Markets
"So let's get this out of the way: It is OK to feel nervous during scary markets, but it is NOT OK to act on the fear."A short six page manual to calm your nerves during scary markets. Well written and easy to read, this short booklet will help you understand why your emotions can cause you to make bad investment decisions. Written by a man who gives just his first name: Carl. You can find more information on his website, Behavior Gap.
20. Switching to Cash May Feel Safe, But Risks Remain
"Less than 1% of the trading days account for 96% of the market gains. Going to cash now is a sure way to lock in losses and miss out on gains."Ron Lieber, a writer for the New York Times, published this brilliant article on 10/8/2008. If you are thinking about abandoning stocks, or stock mutual funds, you must read this now.
21. Don't call it a bailout. Or a depression.
"The nattering nabobs of negativism have it wrong. Here's why: If you look at the data, you'll see more differences than similarities between the 1930's and today."Irwin Keller, a writer for Market Watch, tells us that we are clearly nowhere near a depression. Published on 9/28/2008, he provides detailed data points on the Great Depression, and explains how and why things are different now.
22. Stupid Investment of the Week:Stuffing Cash in the Mattress
"What's going on right now is enough to make a lot of investors want to take their money out of the market and stuff it in their mattress, piggy bank, or bury it in jelly jars in the side yard. Any one of those steps would be the Stupid Investment of the Week."Chuck Jaffe writes for the online site Market Watch, and you can always trust him to give you straight talk. This article was posted on 9/18/08 and he points out the mistakes investors often make when they are trying to do the right thing.
