Saturday, 30 January 2010

Less-Stress Investing

New Bank Rules Sink Stocks”, “Turn at the Capitol Rocks the Market”, “Stocks Set to Bounce” -The stock market and individual stocks are susceptible to headliners, rumors and speculation. Daily monitoring of the ups and downs can be disheartening or exhilarating. Remind yourself that stock market fluctuations are relatively short-run and investment in stocks should be for the long haul. Historically, prices recover over time. If volatile stock investments are too stressful for you, consider growing your investment portfolio through low-cost index funds (i.e. check out Vanguard 500 Index at Vanguard.com). Index funds reduce the effects of individual stock fluctuation by diversifying your portfolio and have performed comparably well.

In order for your savings to outpace inflation; you will need to take on a certain amount of risk with your investments. Low-cost index funds are an option for the road-weary.

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