Many investors are concerned with volatility in the stock market as this new year starts. They fear that their nest egg is going to be wiped out by the credit crunch, a troubled housing industry with suprime mortgage defaults and the potential for further difficulties for hedge funds, banks and financial service companies. There is no doubt that hedge fund trading adds to the market volatility.
Volatility and risk are two different things. It is worth making the difference between them. Volatility is characterized mostly by a security, commodity or market that rise and fall sharply within a short-term period. Now how about risk? It is the possibility of an investment losing value.
So if you are a mutual fund investor who is concerned about volatility in the stock market, here are a few things you can do to reduce the volatility of your portfolio.
1. Make sure there is a good line of communication between you and your financial adviser. Go ahead and meet with your financial adviser to re-examine your investment goals, risk tolerance and financial circumstances. Now that you are at the start of this new year, this is a good time to do it. Talk about any changes that may occur in your investments. If you have changed jobs or decided to take an early retirement, here is a good time to start talking about these topics. Ask yourself many other questions. Did you get married? Did you have a child or become a grandparent? Has there been a divorce? Is your son or daughter needing money for college? Does your investment mix still make sense or put you at ease or in sync with your goals?
Fresno Firefighter and Sprinkler Video, Post-Oscar Fest with Jimmy Kimmel Sleeping with Ben Affleck and Other Stars Are new Youtube Humorous Hits
The Fresno Fire Department is in the news for all the right reasons. By itself, it shows the rest of the world that residents of Fresno can have a great sense of humor. At this point, I will say kudos to Fresno Fire Chief Randy Bruegman for this type of catchy PSA. The message is clear: "Having sprinklers in your home is like having a firefighter living with you. Maybe even better," he added. Who would not understand the importance of having functioning sprinklers in their home? the idea of installing sprinklers is even better than having your own personal firefighter who will hog the bathroom, take over the kids' video games and eating more than his share of dinner. The family and kids may change their mind after letting this firefighter live with them. Who wants to deal with all this gear after all? Comparing a sprinkler system with living with a firefighter is a funny concept developed by the Fresno Fire Department thanks to a Federal grant.