May was a tough month in the stock market, and June's not starting out much better. So what should an investor do?
According to Greg Jennings from OMC Financial, maybe nothing at all. Emotionally-driven activity can actually hurt, he says. Investors who worry too much may sell at the wrong time, locking in losses and reducting opportunities for recovery.
Here's a quick guideline for sitting tight:
~If the decline is short-term and event-driven rather than long-term or fundamentally driven.
~If your portfolio is meeting income needs and your portfolio is generating enough dividends and interest.
~If you are comfortable with what you own and are not losing sleep over it.
~If you are properly diversified to balance again a surprise down in any area (owning 20 tech stocks is not diversity! You should have other areas represented, as well.)
If you're not sure your portfolio is working its best for you, it may be time to check out professional advice.
