Straight Talk from Al Jacobs

 

ADVICE TO INVESTORS

 

For those of you who’ve been paying attention, the securities market has experienced considerable volatility these past several weeks. The three major stock indices – DJIA, NASDAQ & S&P 500 – have all incurred notable one-day increases and declines. And as is conventional, within hours of the close of the market each day, financial commentators and analysts began to offer their interpretations and recommendations. If there’s a single piece of advice which is repeated over and over, it’s that investors should be cautious.

 

Ah, yes … cautious. I’ve been listening to economic advisors repeat that catechism for more years than I can remember. That an investor must be cautious, regardless of market fluctuations, is obvious. Actually I can’t think of many endeavors in which we participate wherein the exercise of caution is not advisable. Nonetheless, the implication seems to be that, barring some bizarre circumstance, caution is not worth mentioning.

 

But along with the standard exhortation, there’s one matter the pundits will not address. You’ll receive no explanation on how to exercise caution, nor suggestions as to actions you might take in an uncertain market, as if a market were ever certain.  Hmm … but let me renege a bit. You’ll receive a bit more than just a suggestion. You’ll be given a recommendation that the way to exercise caution will be to subscribe to an advisory service. And as you might expect, the particular service recommended will invariably be the one offered by the individual who is at that moment is advocating you be cautious. So to solve the problem you need merely click the hyperlink, provide your credit card number, and your uncertainties will be alleviated.

 

And in view of all this, do I have any suggestions to offer? More specifically, what helpful advice can I provide when the market becomes volatile to ensure you’ll not become a victim of a rapidly declining portfolio of securities? Why isn’t it obvious what my recommendation will be? I will, of course, naturally stress that whatever may be the uncertainties you experience or the circumstances you face, that above all you should be cautious.

 

 

Al Jacobs, a professional investor for nearly a half-

century, issues weekly financial articles in which he

shares his financial knowledge and experience.

You may view them on http://www.roadwaytoprosperity.com