September 25 2008 by Ellen Roseman
When I started this conversation in late July, I didn’t expect things would go off the rails so quickly. Now the United States is trying to push through a $700 billion (U.S.) bailout of financial institutions that may not even stem the tide of bad loans and bad paper.
Stay the course. Think long term. That’s the main message you get from your financial advisers if they bother to call or write during this crisis. Many don’t, according to consultant Dan Richards.
I have a financial adviser for my RRSPs, who called me twice last week. She said my portfolio looked good. She did agree to change a couple of my riskier holdings, at my suggestion.
I also have a self-directed account, where I also made a few changes. I realized that I should be taking some of my gains off the table. So I sold half of the stocks that were up substantially.
It’s hard to stand by and do nothing when markets are so uncertain. Working in the media, getting all the news and rumours, I find it hard not to worry when this crisis seems worse than others that have preceded it. But with the cash in my account, I’m also buying a few stocks that seem depressed.
Last week, I wrote about Ted Rechtshaffen, a certified financial planner who has borrowed more than he needs for a new house and is buying stocks with leverage. He has an update for me below.
Now that things are bad, are you staying the course? Or are you wavering? Please keep the comments coming.