SURVIVING ROCKY Financial Markets.

• Author: DAY, DANIEL M.
• Position: Brief Article

Today's financial markets can rattle the most committed investors. Yet the nature of stock markets is volatile -- it's simply easier to accept when markets are going up. The best plan is to stay focused on your long-term objectives. The following should help:

Long-Term Goals. It can be tempting to abandon stocks for more conservative investments. But this is the time it pays to stay focused on long-term goals. You based your investment strategy on your investment objectives, time horizon, and ability to accept risk and personal financial circumstances. Your asset mix of stocks, bonds and cash is based on this strategy. If these factors have not changed, then you probably shouldn't change your investments.

Diversify Your Investments. Spreading money among various asset classes -- diversification -- can reduce volatility. A diversified portfolio typically includes stocks, bonds and cash, plus domestic and foreign markets. Diversification can be more important than picking a winning investment.

Volatility. Don't Try to Time the Markets. Successful investing is more about time in the market than timing the market. Many investors try to...