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Dave’s Investment Blog » Blog Archive » What should the average individual investor do during this market meltdown?
Dave’s Investment Blog
Welcome at » What should the average individual investor do during this market meltdown?

What should the average individual investor do during this market meltdown?

The only money that you should have invested in the market is money that you are not planning to use over the next 5 years. With these funds make sure that you own stocks of high quality companies, well managed mutual funds that invest in the stocks of high quality companies, and/or Exchange Traded Funds (EFTs) that give you exposure to high growth areas of the world. High growth areas are areas where earnings are growing.

Funds that you plan on using in the next 12 months should be invested in a money market. Funds that you need next year should be invested in U.S. Government guaranteed bonds or insured CDs (Certificates of Deposit). Funds that you need the year after should be invested in U.S. Government guaranteed bonds or insured CDs (Certificates of Deposit) that mature in 24 months. The same for funds that you need in 36 months U.S. Government guaranteed bonds or insured CDs (Certificates of Deposit) that mature in 36 months and the same for funds that you will need after 48 months U.S. Government guaranteed bonds or insured CDs (Certificates of Deposit) that mature in 48 months.

At the end of every year you should move the funds you will need in five years to a new U.S. Government guaranteed bonds or insured CDs (Certificates of Deposit) that mature in 48 months.

For suggestions on how to invest the funds that you won’t be spending over the five years sign into DavesFavs.com

Keep a calm business attitude. Don’t let fear cause you to give your future profits to another investor by selling now and moving to the sidelines. You make money in the stock market by purchasing low and selling high. I think we can all be confident that prices are relatively low.

If you have cash that you are not going to use over the next five years, you should judiciously move it into stock shares of high quality companies through direct ownership, mutual funds, and/or Exchange Traded Funds.

Have a fantastic profitable day!

Dave

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