Should I get out of Mutual Funds and move toward a safer investment method?
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I have invested in a mutual fund company virtually 80 percent of my portfolio. With the market in a flux as it is, should I move out of the funds and into something safer? I have ...show more
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Answer:
Nobody can answer this for you as none of knows where the markets are headed. Only you can determine your risk tolerance level. I can tell you this, over the long term stock markets have out performed fixed income investments. The good thing is you have a PORTFOLIO to work with. Keep on saving you are headed in the right direction. Have Fun and Good Luck
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Other answers
Look at the posts in yahoo answers investing. People are in pain and are praying for this bear market to bottom. 10% loss of value is still good. The S&P500 has lost 11.66% since the start of the year. The acceptable draw down among fund managers in Wall Street is less than 25%. Your portfolio is not doing bad, but it can do better. Your portfolio is biased towards the long side of the economy. Stocks and fixed income investments are profitable only if the economy is good. I always tell my clients that a balanced portfolio allocates parts to both conventional investments like stocks and bonds, and also for capital growth. Find an independent financial advisor that can recommend a way for you to profit from this bear market. Hope this helps. Jim http://jsforex.blogspot.com
jsforex.blogspot.com
I suspect we are in for more pain before the recovery. Yes, investing for a long time period does give you more - so if you have several years to go before you retire, stick it out. If you are near retirement, like me, you may prefer to move part of it to cash. It's your decision. Weigh the options carefully, and stick with what you decide.
InspectorBudget
The surest path to failure in investments is to wait until the asset price falls, and then panic and sell out. The stock market fluctuates, and always will. Nobody can tell you for certain what the stock market will do in the next few weeks or months. But in the long term, the stock market rises. It's certainly possible that if you sell today, in a week or two you may feel smart for doing so, but it's likelier that in a year or two you may feel dumb for doing so. So if this is money intended for the long term (like retirement money), then you probably ought to sit tight. (I am.) If it's money you intended to withdraw in the next 6 months, then it shouldn't have been in stocks to begin with.
enoriverbend
I am in the same problem ... I am closely following your question to find some hints as to what to do
penster
The stock market is a casino Nothing can be predicted Your mony is at risk Did you not know this?
wildhorsejones
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