Panic selling of stocks Losses are hard to make up
> Panic selling of stocks, losses are hard to make up (Alberta Times) Many analysts believe that investors are worried about the downgrade of U.S. debt ratings, the European debt crisis and last week's stock market plunge...
Panic selling of stocks, losses difficult to recoup (Alberta Times) Many analysts believe that investors’ psychological concerns about the downgrade of U.S. debt ratings, the European debt crisis and last week’s stock market crash will cause the stock market to plummet on the 8th, making the stock market more dangerous. However, financial planners believe that if they adhere to the correct investment philosophy, investors will be able to make up for their losses in the long run. Yeske Buie of San Francisco investment company Yeske Buie said: "The purpose of formulating an investment plan is to determine what measures to take when the current situation occurs." But bad news keeps coming, and it is not easy for investors to adhere to the correct investment objectives. A setback in the stock market may cause the assets of many investors to be damaged. For example, young people may invest in 70% of stocks. Therefore, the value of stocks may fall along with the stock market. But financial planners believe they should consider transferring more funds into the stock market to make up for losses. But buying stocks even when prices are low can be daunting because investors' instinctive reaction in times of market volatility is to sell. Edelman, CEO of Edelman Financial Management in Virginia, said: "If you sell stocks now out of panic and the stock market does not recover, you are selling at a low price and facing losses. Investors who can only withstand the rise in the stock market and cannot withstand the decline will lose most of their investment." In the past few weeks, the strategy of frequent and regular rebalancing of investments has become particularly important, especially when investors are about to need funds. Experts believe that people who are approaching or already retired should not invest too much in stocks. If you are not confident about buying stocks under the current situation, you should look back at the past two years. Most investment portfolios were stock-heavy because the stock market was rising. Even with the stock market's sharp decline last week, the S&P 500 is still 77% above its March 2009 trough and 23% below its 2007 high. Buying stocks now to rebalance your investment will benefit investors in the long term. But be cautious in your approach, and don't expect quick profits.
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