Wednesday, 21 January 2009

Economic Crisis

How to invest during these bad times? The global stock markets are crashing, economy is in doldrums, jobs are being trimmed. There is doom and gloom every where. So it is common in these trying times not to invest. But this is a big mistake as failing to invest now will mean you will end up retiring poorer. So what should you do? How should you invest?

For one, diversify your portfolio. If you have invested only in equities to benefit from the market highs, now is the time to look at other investment options. Debt for one would be a better option against the market volatility.

Invest a part of your earnings in bank deposits or debt mutual funds. This will protect you against market volatility and keep your money safe. Also if you have been investing in equities, continue to do so, only if you can hold out for at least another five years. With the markets at all-time low, any good stocks are available at bargain. Invest in these stocks for long-term and reap the rewards.

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