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Help! Stocks are falling? What do I do?


I have a small investment in Lowe's, and it has gradually fallen over the last 6 months due to the housing crunch. Should I put what I have in bonds? What should I do?

You should always have an exit plan (in place) when you buy a stock.

The answer to your question relies on you. What is your time horizon? How well does Lowes fit in your asset allocation?

If you are giving this stock 5-10 years from now & it fits within your "asset allocation" and risk tolorence... I'd say hold on to it.

Other words of advice. Never, ever, invest in anything you don't understand. Don't buy on "tips" or the hype from some media star (TV, Radio, Newspapers, Magazines etc.). Always have a stop on your stock purchases and raise it as it goes up. Always protect your capital. Always protect your profits.

One last thought. I've read some of the other answers you've received (so far). There's a few of them that are downright dangerous. Learn about investing. Read as many books as you can. No one will do a better job with your money than you.... if you learn what it's all about.

Long term investing requires patience and discipline. Hang in there. You will be rewarded. If you are a "day trader"...good luck!

Since we are in a recession you should get out of your stocks and into bonds or a "bear fund."

If you learn a little about market timing, it will help you a lot. Here's an article on market timing:

http://commonsensetrading.googlepages.co...

Don't "buy and hold" like so many other people suggest. This is a bad strategy in a bear market. It is a lazy strategy that does not work. You could end up "holding" for years without making any profit. Depending on what stocks you "hold" you may NEVER make any profit.

Investing and trading are two different things all together. If you are a trader then you can consider all kinds of things (like short funds) but if you are a long term investor you need to buying now. When the market goes down like this many people panic and sell. Then when things look good again (ie. the market goes back up) they buy back in at a higher price. Don't fall into this suckers trap! Make sure you have a balanced portfolio of both stocks and bonds, then when the market goes down you sell some bondsand buy more stocks. When the market is back up at new highs you can sell stocks and buy more bonds. This is the exact opposite of what most people do but it is a sound strategy that will keep help you buy stocks low and sell them high.

Most of all, don't panic and buy a bear fund. The market has always come back in the past and has always rewarded people who 'hang in there'. Being a market timer is not easy and most people lose money trying.

Warren Buffett is the richest man in the world because he has faith in the US economy and stock market for the long run. He has never owned a bear fund to my knowledge and neither should you.

Bonds are subject to fluctuations as well. I'd use a stock screener (such as is available on CNBC.com) to find a growth stock that pays a dividiend. Look for a group of stocks that will not be particularly affected by recession or inflation...such as housing or banking - which are currently negatively affected.

i would buy more.

Search the www for investment opportunities you rather invest in, and where you have better information on the company and its product and have more say in the growth of your money.
It is the old yet the modern way, to find the investmet, which is made to your want and have orders.

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