Thursday, August 16, 2007

The market crashes - good time to enter

If you are someone like me - investing primarily in 401 (K) or some sort of a retirement account, take heart.  Don't worry too much about the market crash. You are in it for the long run and therefore short term fluctuations should not worry you.  As long as you have a diversified portfolio, I believe this is the time to boost up your 401K holdings.  Increase your contribution and max out the 15,500 contribution limit.  The market is now at an appropriate price - 10% drop that set it back by almost 6 months.  It also means that you gain six months in terms of when you entered the market! 

If you are the type - who thinks, I am not going to be in the US for long, well, then you are a free man(or woman).  Don't watch the markets - because it is going to be a bloody ride ahead!

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