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What should you do during an economic crisis? Hold on to investments? Sell?
Diversify?
Some key thoughts....
1.) Make sure you have well-established goals
Luck is not a strategy, and times like this separate investors who value
excellence in investment management from those who rely more upon luck than
skill. Make sure that you have well-defined investment objectives, time horizon
and risk tolerance (in other words, you should have undergone a Client
Suitability Assessment prior to investing). Investment performance, at this
point, should be evaluated consistent with one's risk profile. Without this
information, you will not be in a position to decide whether it is prudent to
buy, sell or hold during a crisis. So if your priority is to protect your
interest and preserve opportunities, then you should assess the quality of your
investment decisions and progress to the next level of investment management.
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