Yesterday morning, we learned that a Malaysian passenger liner had been shot-down over the Eastern Ukraine Region, which is controlled by the Pro-Russian Separatists. The Financial Markets worldwide dropped significantly. Today, the Financial Markets in the U. S. rebounded by a similarly good margin; however, Worldwide markets were more reserved. So, what has happened from one day to the next? NOTHING!
Too many investors seem to be swayed by what they hear or read, rather than what they know. Many people work-out regularly and consult with their physicians, keep-up the maintenance on their homes and cars, and save money for their Children’s Education or their Retirement. Now, I can understand someone following their doctor’s advice or the dealer or garage that services their car(s); but, Education and Retirement are generally long-term needs, which they should take an active interest in. Also, keeping-up with your Child’s Education Fund or Retirement Nest Egg doesn’t require any special tools or knowledge.
When it comes to significant market swings as we’ve seen over the past couple of days, consider these two questions: does the particular upward or downward surge make sense: and how does that movement impact your willingness to own the particular investments in your portfolio, or changes that you have been contemplating? As always, however, take any potential lasting market movements as a reason to review, and perhaps to re-balance, your investment portfolio.