These days, we're getting hit from all sides -- unemployment, foreclosures, the rising cost of living and the unsettling future of dwindling pensions and retirement plans. Now it's more important than ever to be smart and have the courage to learn as much as you can about your "mini economy" so that you can formulate and maintain a plan for your financial security.
Carmen is joined by Dean Baker, economist and co-director, Center for Economic & Policy Research and Larry Adam, Chief Investment Strategist, Deutsche Bank Private Wealth Management to discuss the best ways to cope when you and your family are being squeezed financially on multiple fronts.
Dean maintains the need to keep it all in perspective -- hard times certainly are ahead and may last as long as a year or two, but we have survived downturns in the past and we'll make it through this one as well.
Larry agrees that these tumultuous days can be confusing and stressful for everyone, especially when it's uncertain what factors are moving the markets hour to hour, let alone day to day. His advice mirrors Dean's: keep things in perspective, don't panic and don't sell. Hold out for the long-term. The markets -- and your investments -- will survive this period of volatility.
While advising several viewers calling in, Carmen and her day's panel of financial experts continue to stress this importance in maintaining perspective: stay calm and don't let stress and panic force bad decisions.
Marc Thornton, former executive at JP Morgan, author and corporate trainer offers up three key questions you should think about or work on with a financial advisor when planning out your personal financial strategy:
- What action should I take now?
- What action should I take in future scenarios?
- When is a good time to buy?
Thinking through these questions thoroughly will allow you to break the "cycle of stress and panic" -- and help you regain much-needed perspective on the long-term strategy of investing.