Wild Stock Market Rides Getting Old?

By David J Drummond

StockMarketRide.jpg

For the average investor the picture above can be a common occurrence in one's investment track record. In fact, in the investment world this is taught as a rule; the common investor will buy high and sell low. Why? Because they don't spend enough time researching their investment purchases. Instead they tend to follow the market news jumping in when it goes up, however, when the market falters, they are the first to panic and sell.

The last couple of days have awakened the masses as the televisions squawk with news of the market crashes; DOW selloffs; is this the big one; what's next for the markets and any other attention grabbing headline the news channels can promulgate. The reality is that the market corrected, and will most certainly correct again. But when? Nobody knows is the real answer.

There will certainly be a next time and, unfortunately, for some it will come when they can least afford to bare the brunt of the hit. For others, they will be able to ride it out if given enough time. Regardless of which of these camps you are in; please look to diversify your portfolio

Just like the crypto-investors who have seen Bitcoin go over 20K and back under 10K the good times don't always last. Many of those investors only have funds in crypto and, if they were wise, they hopefully sold some of their coins to buy additional assets classes. As, the only true protection against wild rides, is diversification.

So, if you have not expanded your portfolio to include some alternative investments such as precious metals, real estate, timber, agriculture products or opportunities that aren't directly tied to markets; you should consider doing so sooner than later.

We all know the game. We all know that at some point the big one will arrive. The real question is will you be ready when it hits? 

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Topics: Asset Protection, Alternative Investment