All Is Well, Remain Calm…?

Is this what your week in the market has felt like? Watch below.

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How can you remain calm when there is chaos all around?

Here’s what I recommend you do today.

1)      Make sure all of your individual stock positions and sector holdings have a 25% trailing stop loss on them. And then when your positions hit their stop loss, just close your eyes and sell. Protecting your downside is important.

2)      Notice what is NOT falling. In this case, over the past eleven trading days there have only been three investments that, not only did not fall, but have gone up. Think of the three investments below as insurance against panic selling.

a.      Gold (GLD) has gone up 10.96%

b.      Long-term US Government Bonds (TLT) have gone up 11.85%

c.      The US Dollar (UUP) has gone up .71%

3)      Take a long hard look at what investment strategy you are using to grow your money. Ask yourself, “How does my portfolio handle downward movements in the market?”

I want to say one more thing about panic selling that lasts for days or weeks.

Investors stop thinking and they become even more irrational then they normally are.

To control your own panic, look at the big picture:

        Gold and silver are in long-term secular bull markets.

        The Western World is in a long-term secular deleveraging process. This means for the next seven years we will have periods of calm and periods of panic.

        Interest rates are going to stay very low for the next three years.

So when it feels like Animal House all over again, follow my instructions and remain calm.

Together, we are growing and protecting your wealth,
RC Peck

2 Comments

  • IvanH.

    August 5, 2011

    RC, thanks for the reminder and the insights on how to remain calm. I'm glad I don't watch the news regularly either because I'd be stressed out and worried all the time. =)

  • Joyce

    August 5, 2011

    RC– Really enjoyed your video!
    Reminds me of the Kipling poem — If you can keep your head while all about you are losing theirs, you'll be a man, my son.
    It's good to have a cool head like yours around!
    Thank you.