The internet money blog posts a special money report :
The last month Wall street has lost a lot of billions dollars due to the subprime crisis.Also falling dollar,high oil prices,surging commodities put more pressure on the US Economy.Are we in recession?
Irrational Exuberance made known by Alan Greenspan is again present.Panic,Chaos,Distress,Frustration and a sentiment towards being bearish on the market are very intense these days.So how to deal with money crisis?
- Be calm.Be patient.Be on alert.Be subjective.
- Wall street lost a lot of money already,potential more to lose due to mistakes and greed.
- High oil prices are here to stay.But when everybody is optimistic or pessimistic then reversal,sudden ones become.If you want to deal with oil trading educate yourself and invest potentially in options so as to have limited risk.
- Diversify in commodities but be alert as what refers to oil prices is also applicable to commodities prices
- Be very careful about the phenomenon or curse of reporting stocks in covers of magazines.Take for example NLY.Its stock soared up to a few days ago when concerns about subprime crisis caused it to fell about 25-30%!It has been mentioned on Fortune Magazine Special 2008 Investment guide.
In a downturn market all stocks suffer.Even the best ones.NLY raised its dividend yet got slammed very hard.
Play with caution the bear market.
Stay aside in cash,educate yourself and wait for signs.Be patient as opportunities always exist.
