Free but useful advice, not all mine. We are in volatile markets. The steep fall of the past two days will not last much longer, but the ups and downs will, for the next 6 months. That presents buying opportunities, availed of with care and professional advice. Remember the old contrarian adage: sell when others buy and buy when others sell. Or, buy low and sell high. Now is low.
Never borrow to invest except for the long term (10 years or more) and except in a strategy that has no margin call. I feel extremely sorry for quite a few of the people I know who are being contacted by their investment firm for margin calls on top of their current losses running into the tens of thousands. Be well diversified however much the temptation. Make sure your investment portfolio holds a mix of asset classes (equity, fixed income and real estate) across geographical boundaries. To do that, invest in mutual funds rather than directly in stocks. Less volatility and better sleep. Also a professional portfolio manager knows much before you do when things are going to happen. You can buy meaningful positions in at most 10 stocks. The average mutual fund holds 80 to 100 different investments. Don't sell in panic at this point in time. Just ride out the tumbling markets. The worst market decline in recent memory has been reversed within less than 2 years. If you have idle money, buy when it is clear that the sudden decline has stopped. You will have ample time to know this. Markets do not bounce back in mere days. Above all remember that people lose money because of only two emotions: FEAR and GREED. May you have the wisdom to avoid both. With regards from one who has ploughed through various market cycles, Roland. Toronto +1 (416) 453.3371
