Thursday, August 8, 2002
More Bang for Your Buck: Surviving the Stock Market
The recent slump at the stock market may have everyone double checking their portfolios. But don't let the lows on Wall Street get you too down.
(WSVN) Anybody who invests knows just how scary it can be out there.
Wall Street has been wall to wall chaos thanks to a bear sighting.
Rare species like WorldCom, Enron, and Adelphia have clawed up the economy.
Frank Hornstien is one of many people just trying to survive.
He is using this down time in the market to pick up some bargains and secure his future.
Frank Hornstien says, "I actually looked at it as an opportunity to get some good buys."
And there are good buys out there if you know where to look.
Ruth Cooper, of Merrill Lynch, says "Develop a financial plan which is the equivalent of going to a doctor and getting a complete physical."
Ruth Cooper has been a financial advisor for over 25 years.
She says timing is everything.
And research shows stocks still will provide the greatest return.
"It's good to buy when the market is down if you are buying the right kinds of securities."
The right securities are the old faithfulls like IBM, Proctor and Gamble, and Conagra Foods.
"It's important to take a look at blue chip stocks who have been around for a long time and are able to weather these storms."
And we know all too well you can't predict when lightning will hit so it's best to spread the wealth.
"Make sure your diversified by asset allocation which is some stocks, some bonds, some cash."
But remember to keep your eye on the big picture, the future.
"Will I be able to educate my children, will I be able to live well in retirement, those are the overriding concerns."
Frank's enjoying the current stock market sale.
He's not only looking to uncover the next big thing, he's looking ahead to something bigger.
"Hopefully I'll be able to retire at a normal age."
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