Personal Finance Tip-How Does Your Stomach Feel?


Today is the day for the litmus test-If you can not stomach to look at the carnage in your portfolio and you are beating yourself up then it’s time for a change. Consider the facts:

1.The Dow is off 437 points since the Fed met.
2. Nasdaq’s 2006 gains have vanished.
3. S&P 500 at two month low

These are the days when I would call my clients and if they were literally sick to their stomach and beating themselves up; I knew we had not done a good job in risk vs reward analysis and needed some serious asset reallocation. When the market is going straight up we all look like geniuses. But today is the day you want to ask yourself some hard questions and then make the necessary changes. There will be more days like today and there will be huge up days. Investing should be both profitable and fun!

Steve Mertz
Litmus Test Day!

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