Brother Can You Spare A Quarter?

April 2, 2008
By seadmin

Fellow Investor,

The first quarter of 2008 now is officially in the books, and history will look back on this three-month period as one of the worst ever for stocks.
Let’s face it; nobody thought we’d see this kind of sell off in equities. Sure, some of us thought we were due for a pullback, but I don’t know anyone who actually thought the NASDAQ Composite would be down more than 14% in one quarter.

Man, oh man, I’m glad I had my money in the safety of cash!

The interesting thing about this dismal quarterly performance is that it occurred not only domestically, but also internationally. The table above shows just how poorly all of the major market indices — both U.S. and foreign, performed in the first quarter. It also shows just how weak things have been in most of the major averages during the last 52 weeks.

Is there more to come, or is this the beginning of a bottom in stocks?

I don’t know for certain, but one way you as the investor can make sure you don’t fall victim to more damaging declines is to ensure that you don’t have all your eggs in one equity basket.

Keeping your distance is the only wise approach to managing your money in this market. So, remember that whatever moves you make right here, you must make them with the full realization that stocks have a long way to go before this bear is chased out of the woods.

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