Topic: How To Invest

What is Pat’s commentary for the week of February 4, 2014?

Article Excerpt

Now that the market downturn is firmly established, you may wonder if you should sell all or part of their holdings, in hopes of getting back in at lower prices. Before doing that, you should determine how appropriate your portfolio is for you, regardless of the market outlook. Ask yourself how well your portfolio would suit you if the outlook was neutral. Here’s one key factor to consider: how soon do you need to take your money out of the market? After all, there is a large random element in the timing, duration and depth of market downturns. Suppose you plan to take the money out of the market this fall, perhaps to buy a home. In that case, you shouldn’t be in the market at all. As a general rule, you should only invest money in stocks if you can afford to keep the money there for two to five years. Are you investing with borrowed money? This expands…