Thursday, October 19th, 2017

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Investing in a Down Market

Young people must not be afraid to get involved in the market, despite its recent turbulence.Investing at a time when most professional investors seem to be backing out of the market can seem daunting, but some basic strategies can help to reduce the risk and make good use of even a down economy.

CBS' MoneyWatch reports that Wells Fargo Wealth Management released a note to clients detailing some basic approaches to the current market.

First and foremost, the note emphasizes the importance of understanding the timeline of these investments, but perhaps as important is the basic concept of diversity. This applies to spreading investments between stocks, bonds, real assets and others, as well as within those categories, looking for investments across the world and offering varying types of returns.

In addressing the current sour economy, investors must remember that the market will recover, and the current low prices represent a strong opportunity for investing in reliably valuable assets, such as stocks with larger market capitalization.

Investopedia, meanwhile, cautions that despite the opportunities presented by the current market, novice investors should be wary about putting money into stocks they are not prepared to lose, and just as importantly taking a steady planned approach rather than trying to play the market.

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