Provo, UT (PRWEB) September 15, 2011
After the recent volatility in the stock market, Paragon Wealth Management's President, Dave Young, gave worried investors three simple rules to follow to provide some relief.
“After spending most of the year in a back-and-forth uneventful trend, the world markets abruptly changed course,” said Young. “A severe lack of fiscal leadership from Washington coupled with a sovereign debt mess in Europe cause the global markets to sell off hard.”
Young said the recent volatility has been the most extreme we have experienced since the 2008 meltdown. He said the volatility, accompanied by the endless negative news - real and imagined - is enough to make investors question if there is anywhere safe to put their money.
“I don't remember a time there has been so many huge, back-to-back, up-and-down market moves in a row,” said Young. “On a regular basis, the Dow Industrial has been losing or gaining 400, 500, and 600 points at a time.”
Young recommended three basic rules for investors to follow in difficult times to avoid selling low and buying high:
Rule #1 - Never sell out during panic. Don’t make any major changes to your portfolio when the markets are moving 500 to 600 points a day.
Rule #2 - Establish your risk tolerance before you invest. Define in advance how much risk you are comfortable with and reevaluate it each year.
Rule #3 - Keep your focus on the long-term. Your investment strategy should be made when markets are stable and based on your long-term goals and objectives.
“Usually markets will do whatever the majority doesn't expect, and right now most investors are scared and expecting the worst,” said Young. “We don't expect another recession soon based on the current economic numbers we track. However, that may change if Europe doesn't deal with its debt problems or U.S. consumers scare themselves silly and pull back on consumer spending.”
About Paragon Wealth Management
Paragon Wealth Management is a registered investment advisor (RIA) in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon has received numerous awards such as the Best of State Award in Investment Advisory Services in 2011, the Best of State Award in Financial Services in 2008, and the NABCAP Premier Advisor award in 2010. Paragon has also been recognized on several lists such as WealthManagerWeb's Top Wealth Manager's list in the U.S. in 2010 and others. Call 800-748-4451 or visit http://www.paragonwealth.com for more information.
Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjunction with his/her advice.