Panic is in the air. Just don’t forget, what’s in the news is old news. Construct a portfolio built for equity upswings and downswings and stay invested. This means incorporating multiple asset classes outside of stocks. Diversification is the key to survival.
Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks. About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute
, a Washington-based trade group, and EPFR Global, a research firm in Cambridge, Massachusetts
. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman’s bankruptcy, the data show.
Read the rest at Bloomberg Personal Finance.