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Saturday, December 27, 2008

Gaining financial freedom in a struggling market

As many Americans are aware we are currently involved in a recession which has been the worse since the 1970's. Many of us are losing money in the stock market, realty and other investments. However don't panic! The monetary policies the United States government uses are set up in order to protect us from such shortfalls in the economy. Something I have noticed recently is panicking individuals who have lost a substantial amount of money in their 401k accounts; so subsequently they are selling or trading their shares or other investments. First off unless your primary stock is in a failing company which is known to be going under, do not sell your investments. The market always has peeks and troth's; however a recession is just a longer troth than in a normal market period. These companies will return your earnings as soon as the market picks up. This may take a year or two but be patient! Unless you are retiring right now and have no emergency funds to live off of, hold on to your investments! I can’t stress enough how when people panic they lose money. I have talked to stock brokers in my family (I am currently training to become one; I will have a MS in economics soon as well) and one laughed at me when I told them about how everyone is trying to get rid of their investments so they don’t lose more. The investor who’s name I will not mention works in Boston; his firm is hiring a lot of the “big shots” out of NYC and making a positive return on their portfolios. Not all stock brokers are losing money; many are still flourishing. Don’t be fooled by the media and rising prices; you can beat the recession and still come out on top I will tell you how.

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