Wednesday | May 23, 2012
Volatility will continue in 2012
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By
YOUNG MONEY Staff
6 December 2011
Even if the United States solves its fiscal deficit, China successfully copes with its economic slowdown, and Europe survives its debt problems, analysts have arrived at a consensus that volatility will continue to be a problem next year, according to the media outlet. Long-term planning and portfolio diversification will be even more crucial as a result of these continuing market fluctuations.
Fran Kinniry, who is a principal in Vanguard's Investment Strategy Group, told the media outlet that investors "need to develop an asset allocation plan and really try not to get the short-term market to run their emotions" if they are going to invest in the right way.
He added that exchange-traded funds are an attractive option because there is a selection to choose from and they have low costs.
One problem with diversification in such a down economy is that asset classes correlate more strongly than they do during times of expansion. The Motley Fool reports that analysts are not pointing to many asset classes as clear safe havens from market swings.
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Jayant said:
Very nice article. Thank you! I am just 25 and was looking for some advice. I will be starting my job soon and wanted to get a jump-start. As again, thank you very much! |
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Jayant said:
Very nice article. Thank you very much for the advice. I am trying to figure out the difference between traditional IRA and Roth IRA. Thanks |
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Adam said:
good article! |
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WashingtonSavingsBank said:
Great insights in this article. Smart saving habits can be difficult to start, but young professionals should take the time to work closely with their banks and develop a savings plan that suits their lifestyles. http://ow.ly/3IMVh |
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saw said:
this article is decent but isn’t the whole story…One; saving is losing, As inflation makes it worth less and less, even the interest that pile of cash collects on the bank isn’t enough to make up for how quick inflation works. Two. Live within your means-while that’s great advice, you don’t want to inundate yourself with a sense of lack…know the difference between assets and liabilities and play the game of investments. your cup will floweh over when you do it with a wealthy mindset. thats my two cents anyway. god i sih the rules of money were still like the ones in this article. |
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Robin Williams said:
Saving money imposes great advantages for our personal finance in the long run. I think it should be a priority because when we have a security blanket, there will have no reason to be stressed out about money. |
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