Stocks: Prepare for a roller coaster

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By Bahiyah Shabazz, MBA

Stock Market Fortune Cookie

During 2011, investors witnessed a volatile market.  It was a road toward emotional investing, which led many to pull their money when the stocks were down.

It seems the first quarter of 2012 will not be any better. Prepare yourself for a fantastic roller coaster ride. As Fabulous & Money Savvy™ has said in the past “the only person who gets hurt on a roller coaster ride is the person who jumps off “.

Investors may be saying good riddance to a choppy year, but they’d better buckle up. The first quarter of 2012 is going to be a roller coaster ride, with Europe front and center.

“The euro debt crisis continues to be on the feared side of the ledger, where markets suffer spasms of the unknowable,” said John Velis, head of European capital markets research at Russell Investments.

Europe is widely believed to have slipped into a mild recession during the fourth quarter.

As investors prepare themselves for a volatile portfolio, you can “protect” yourself from total loss. Begin by scheduling an appointment with your financial advisor.  Next, diversify your portfolio that meet your concerns.  Lastly, become an advocate of your retirement plan by reading your monthly statements and scheduling quarterly meetings to discuss the performance of your plan.

There’s no way to completely avoid what is happening in Europe. The best action is to remain involved so that you are not oblivious to what is happening in the market.

Meanwhile in the United States, investors are concerned with the decisions in Washington.  In the heat of the moment, Pres. Obama signed the extension for the payroll tax cuts. As many were excited, it only delayed the decision-making until March. Washington… The Government… Campaigns… Decision making. It all is a recipe for an unstable economy.

[youtube=http://www.youtube.com/watch?v=8f-Z9DqCs80]

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“Love yourself enough to support yourself.”

© SMG, LLC

About Bahiyah Shabazz 1003 Articles
Bahiyah Shabazz is one of the nation’s leading financial experts on the art of maximizing your growth. She's a wealth building expert, author, speaker, financial advocate, magazine and online columnist.

4 Comments on Stocks: Prepare for a roller coaster

  1. Hi,

    There is no link for the video on youtube (couldn’t find it anyway).

    In any case, I think the real roller coaster will be in the bank stocks and in IPO stocks, with the a general downward trend…

    • It’s there…

      I agree with you. The IPO stocks and bank stocks will be extremely volatile for 2012. The combination of companies lacking prudent decisions and earning the trust of the consumers is going to be the downfall. You will find many consumers nervously pulling their money to invest in “safer” funds.

      Last year, banks throughout the world were among the worst performers. Funds that invest in U.S. banks declined about 13 percent.

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