[dropcap]T[/dropcap]rying to time corrections is a dangerous game, as is letting one’s emotions dictate buy/sell decisions. A portfolio diversified across multiple asset classes is the key to riding waves of market volatility. Doing this, while customizing the portfolio to your personal financial situation, is a great way to reduce risk and pave the road for long-term financial success.
[quote]Michael Shlau had had enough. The Chicago commercial real estate lawyer watched lawmakers wrangle over the debt ceiling this summer, and as the deadline approached without a deal, he got nervous. So he buried his retirement money under the mattress. Figuratively, that is: Shlau, 38, moved his and his wife’s 401(k) balances completely to cash. “It seemed silly not to step aside and let it pass,” he says. Shlau’s decision — which, of course, helped him avoid the market’s subsequent sound and fury — might have been extreme. But at a time when many investors feel their confidence beginning to buckle, he’s by no means alone in his concern. …[/quote]
Read the full article at the SmartMoney.