Fox Business News: Current World Events and Long Term Investing
Fear of the unknown always drives markets because investors move money based on emotion. In this Fox Business News interview, Marc Scudillo discusses the concept of fear driven volatility, citing the confluence of the Japanese earthquake/tsunami/nuclear power plant disaster, the series of revolutions in the Middle East and Africa; and the “back-home issues” of mortgage foreclosures and creeping inflation.
“EisnerAmper clients are nervous,” Marc states. “There is so much data, so many headlines from around the world that investors have to gauge what makes sense for them in terms of their investment time horizon.” Long term investors, he adds, must expect their portfolios to experience ups and downs and to factor that into their own psychology as investors. Short term investors, who find themselves with frazzled nerves should seek an investment balance that could be radically different.
Marc’s comments regarding advise EisnerAmper is providing clients centers of the “colors of the spectrum” philosophy: diverse holdings e.g. different colors, is the proper strategy, with re-balancing a regular part of their investment activity.