As of today I am switching gears with my Mutual Fund Watch blog. For the duration of the credit crisis I will make a daily (I hope) comment on the markets and how they affect you. I am especially looking to provide you with articles that give you information that you can use without the hype and hysteria so often served up by the financial press these days.
Obviously not much in the stock market over the past few weeks has seemed very rational. One of the things that struck me as most ridiculous was the endless parade of market mavens supplied by CNBC. The majority of these people (Jim Cramer & the like) are short term traders whose time horizon is a few weeks at most. I would strongly recommend that you tune these people out and stick with your investment plan which, if it is well thought out and matched to your risk tolerance, will continue to serve you well. I’ve attached two articles that I thought especially insightful.
The first is by Knight Kiplinger, editor of the Kiplinger Letter. I have long provided a link to Kiplinger.com from PCM’s website because they provide consistently solid, useful advice. Pay special attention to Mr. Kiplinger’s thoughts on the importance of continuing to fund and maintaining the asset allocation in your 401(k).
http://www.kiplinger.com/features/archives/2008/10/knight-kiplinger-on-buying-stocks-now.html
The second article is from The New York Times and contains some thoughts on the current investing situation from Ken Heebner and Marty Whitman, mutual fund managers whose track record must command respect. They point out the unwarranted amount of damage being done to the stocks of some very good companies.
http://www.cnbc.com/id/27137494
Enjoy and hang in there.
Greg Staub, CFA
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