What Should You Be Doing Now?

October 10, 2008 by Joe Ponzio

Folks – it’s ugly out there right now. Not just from a market standpoint, but from a global economic standpoint. We put together a nine-page report for investors that are scared, confused, or not sure how to understand or navigate this mess.

It is being sent to our clients today via e-mail (about half have received it), and is now available for download as well. You can download it for free here (no registration required).

Feel free to pass the report or link on.

Here’s what I had said in the e-mail as I sent out the report:

To my friends, family, clients, and others:

Attached is a 9-page report about understanding, saving in, and investing for the global economic crisis. It’s really bad out there right now; and, it’s likely to get much worse before it gets better. If you are having a hard time figuring out what to do right now, this report should help. Excuse the typos, if any. I felt the timeliness and depth of the content was the critical part. As I write this e-mail, the Dow Jones Industrial Average hit a daily low of 7,882.51 – a level first achieved by the Dow on July 21, 1997. In addition to losing nearly 50% over the past year, many people have lost 11 years of saving and investing.

This isn’t your standard “stay the course” strategy that many investment advisors and talking heads are promoting. Instead, this report should help you understand the problems and its implications going forward. Feel free to pass it on to others, or let them know they can download it for free from http://www.meridgroup.com/blog/7.htm.

Now is the time to look for permanent holdings; but, keep a watchful eye on the situation as it unravels.

Let me pull one line out of the report that is of critical importance as you consider your strategy going forward:

[P]ortfolios must be managed in a dynamic way so that they are not reactive to the markets, but carefully planned for the future.

On a broad market and economic scale, the future looks bleak for the next few years; so, forget reacting to what has happened and carefully plan your portfolio for the future, even if that means taking losses now.

A Note From Joe Ponzio

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