With the instability in the markets right now, many of us are looking for advice on where to put our money and when. According to Scott Laue, a local financial expert, we can master the market by making a few simple moves.
“I think expectations were a little out of whack in terms of people expecting greater returns in turn to what they should expect over longer periods of time.”
Scott Laue says stock market and 401-K losses should teach us how to invest our money smarter. Navigating the market is tricky, but we can all reap rewards if we know how to play the game. A safe move is to put money into global companies and mutual funds. Your money is then invested in securities in different industries, which reduce risk. Another plus is the ups and downs of the market often off-set each other.
“Don't put all your eggs in one basket. You want exposure to small cap stocks, large cap stocks. You want exposure to bonds, exposure to international markets. So if you diversify, you'll probably end up OK. There are a lot of folks that look at indicators that think they will be able to tell the success of a stock moving forward and that's very difficult to do. We don't tend to prescribe investing in one individual company because anything can change and that can be more risky.”
Laue says one of the best lessons the market freefall has taught us is how to be better savers. He says many people invested heavily in the stock market but didn’t have an emergency fund in case of job loss, or other financial hardship.