February 25, 2011

Middle East Turmoil and Your Portfolio

Bill Ramsay

Middle East

An easily forgotten truth of investing is when prices are high, skies are sunny and when prices are low it’s stormy.  In other words, successful long term investing involves turning cautious when things look good and aggressive when things look bad.  Sunny = Sell High, Stormy = Buy Low.

Best Time to Invest

Think back to last July when there was oil in the Gulf of Mexico and the TV and radio talking heads were all convinced we were going into another recession.  Did those mid-summer days feel like the best opportunity over the last year to invest?  Since then, skies have brightened considerably and stock prices have risen about 20%.

Fear = Opportunity

We don’t know which way the Middle East turmoil will resolve.  It could be positive or negative in the short run.  In the long run we don’t think it matters, revolutions and geopolitical turmoil is the norm rather than an exception.  Short term scares provide the opportunity to pick up stocks at low prices from those who are selling out of fear.

So if market conditions get worse, how are you likely to react?

Photo Credit: rkramer62

Share
Posted

February 25, 2011

Category

Bill Ramsay is a Certified Financial Planner™ and owner of Financial Symmetry, Inc. Bill is often interviewed for industry publications such as Financial Planning, Inside Information, Journal of Financial Planning, and Investment Advisor. He is a frequent guest for The Triangle Business Journal’s annual financial roundtable discussions. Bill has also been interviewed for national financial publications like The Wall Street Journal and Barron’s as well as general news publications such as Newsweek and the Raleigh News and Observer.

Market Outlook

Heavy Weights: The Real Story Behind Current Market Concentration

Market Outlook, Podcast

Fighting FOMO in Your Portfolio, Ep #233

Take Charge of your Finances

2025 Contribution Limits

Learn how to balance your retirement

Financial Symmetry advisors unveil financial opportunities to help you balance enjoying today with being ready to retire later.

Subscribe
Get weekly updates with our latest blog posts.

Financial Symmetry icon

CLIENT CENTER

UPLOAD FILES

Pershing Account