Bubble Talk Have You Nervous? Here’s What To Do.

Follow this 5-step program to prepare for downturns

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Bubble Talk Have You Nervous? Here’s What To Do.

Step #4: Buy, Sell or Hold

This is the time to take your action. You’ve already assessed the situation and have determined if there’s reason to believe a further downward slide will occur or not.

Have confidence in your decision and stick with it. While I’m no fan of taking action for action’s sake, if you decide that a stock should be sold or a buying opportunity has presented itself, you need to act on it.

Step #5: Have a Strategy

Sell-offs will expose weaknesses in your portfolio. Use your knowledge of which stocks were hurt the worst to trim your holdings in one area and increase your exposure in another. The lessons you learn during each boom and decline will make you a better investor and help you reach your financial goals.

I hope that you found this 5-step list helpful and that you will feel confident with the knowledge that you will be prepared for any market volatility that may come your way in the weeks and months to come.

And I can guarantee you that more volatility is on the horizon. Why is that? Because there is always a level of volatility around earnings season. Knowing that stocks will rise and fall and being prepared for both situations is part of investing.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/markets-market-bubble/.

©2014 InvestorPlace Media, LLC

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