Veteran Wall Street investor gives advice for surviving a crisis

[one...two...tree 2,762]

With financial markets in distress and the Dow tumbling below 10,000 for the first time in four years it's tempting to put your head in the sand -- or all your money under a mattress.

Rather than refusing to look at your statement, use this moment of fear and loathing of all things financial to your advantage:

• Review your portfolio and see if you're really diversified across all asset types and global markets, as well as cold, hard cash. Not much is working now but diversification is one thing you can control.
• Make sure your portfolio fits your time horizon. If you have 20 or more years before retirement, history suggests you will benefit from purchases made during the current market duress. (And I'm talking about long-term investing via a 401(k) or similar retirement program, not a short-term trade, which may or may not pan out in the next week.)
• Know your risk profile. If you can't stomach the drama, maybe you're really not an "aggressive investor" after all.

Such advice may seem obvious to more sophisticated market players -- many of whom were anxious to "buy the dip" this morning, at least before the open. But with emotions running high, it's worth remembering what long-term investing is really all about.

http://finance.yahoo.com/tech-ticker/artic...C,^IXIC,SPY,DIA

[Jasman0717 9]

This would be a good time for me to move my 401k back into the more volatile stocks but I am just a big fraidy cat

[Peikko 1,575]

I don't blame you, although this could be a good opportunity to buy stocks and make a lot of money, it could also lead to some catostrofic purchases if you aren't really sure of the markets - at least that is what I imagine.

[Heracles 417]

Or you could invest in stable economies like...

One guess Steven..

Hint: Starts with a and end with a.

[caybee 21]

I moved the 401(k) from my old job into a money market when I left there a couple of years ago. I'm thinking about putting most of it into something riskier since I have 30 years, maybe more, before I expect to retire. I just don't know if I should do it yet or wait and see if things really bottom out. Probably best to do it now.

[Ban Hammer 13,352]

Or you could invest in stable economies like...

One guess Steven..

Hint: Starts with a and end with a.

argentina?

[Peikko 1,575]

Very little point in trying to buy into a stable market - no risk, no gain

[mawilson 2,133]

Or you could invest in stable economies like...

One guess Steven..

Hint: Starts with a and end with a.

argentina?

Antarctica?

Africa?

Algeria?

Aruba?

Armenia?

Antigua and Barbuda?

[mawilson 2,133]

Very little point in trying to buy into a stable market - no risk, no gain

Or you can just buy one of the inverse index ETFs which increase in value when the market falls, duh.

http://www.profunds.com/ProFundsProfiles/F...rse_ProFunds.fs