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Boston Globe: Tired Of Fluctuations, Many Are Shedding Stocks

Wednesday, June 30, 2010 - 1:05 PM
Boston Globe article looks at a common trend:
The wild gyrations of Wall Street and tumultuous world affairs have spooked millions of investors into going against the conventional wisdom: that staying the course during market fluctuations is the best long-term strategy. Investors are leaving the stock market in droves, and putting their money into bonds, gold, real estate, or [...] cold, hard cash.

Have you removed all of your money from the stock market?
1
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Saturday, July 3, 2010 - 7:29 PM
Have you removed all of your money from the stock market?

No.  In fact, I continue to purchase.  As a hedge.

This month's issue of Money magazine takes a look at Warren Buffet's playbook:

http://money.cnn.com/2010/06/21/pf/inflation_buffett.moneymag/index.htm
(Money Magazine, July 2010) -- Now that Europe's financial markets have hit a giant speed bump, raising fears that the U.S. recovery could also stall, inflation probably isn't something you're worried about today. But when it comes to the threat of rising prices, there are a couple of things you should know.

The first is that the planet's smartest investor is worried about inflation. I recently had the pleasure of attending the annual meeting of Berkshire Hathaway in Omaha. Normally at these events, Warren Buffett balks at making broad macroeconomic pronouncements -- he once called economic forecasts a "distraction" for investors. But this time the Oracle of Omaha came out and said "the prospects for significant inflation have increased, not only here but around the world."

The question is, What strategies should you undertake to combat inflation? The knee-jerk reaction is to buy gold or other "hard assets." But here again, I like to take my cues from the master, who prefers to fight inflation by investing in shares of companies with pricing power.

 

One of the most important investments:  LIVE WELL BELOW YOUR MEANS.  I think that's a move in Warren Buffet's playbook, too.
1
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
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