How to Deal with Stock Market Volatility

Market volatility is a fact of life when it comes to stock market investing. Stock prices fluctuate daily. Markets ebb and flow over time in line with the economy and business cycle. But when it comes to current stock market volatility, Wall Street has been unpredictable with triple-digit swings in the Dow and media hype-driven trading.

In times of extreme market volatility, whats an investor to do? Sure, it makes sense to turn to a trusted financial advisor for advice to get a handle on whats going on with the current stock market situation. But everyone has an opinion, and there is rarely consensus. With insider information and dissected financial media reports, some may be thinking its the beginning of the end while others see it as a bump in the rocky road.

You probably shouldnt rely on the financial media who do a great disservice to us investors by encouraging panic and fear. So-called experts on primetime TV who foresee doom and gloom or rapid recovery dont own or use crystal balls. They really have no better idea of future market conditions than you do. The truth is, nobody really knows. And if they claim to, theyre probably just pretending. Past events cannot dictate the future of the market. A solid financial planner will tell you that stock prices dont follow a pattern. There are no codes to break no trends to analyze. Just watch the stock market activity for a couple days. Youll see that what happened yesterday wont necessarily affect tomorrows stock prices.

So, whats best? Pulling the cord and jumping? Sticking it out and hoping for the best? Some believe that investors who scrutinize the financial news and make investment decisions based on predictions often end up losing money. They believe that those who stay the course and ignore market volatility reap the returns of the capital markets. Others are tired of being told they should just buy and hold, so they panic and sell.

The traditional advice financial advisors give in a market such as this would be to hold tight and don’t give into panic. It is easy to be pulled away from a strong long-term strategy when markets are under pressure. The numbers would suggest that it is important to stick with your long term strategy and remain mindful of getting caught up in the emotional drive of the stock market. Opportune selling times rarely surface during periods of elevated emotions.

Bank Owned Homes For Sale – Assessing The Best Deal

Foreclosure market is the hot bed of cheap properties. The abundant supply of foreclosure properties for sale has resulted to cheap prices, which benefits first-time homebuyers and investors. However, it is not just enough that you find cheap bank owned homes for sale. You have to find one that can be described as a good deal. But how would you know if the bank owned home you are considering to buy is a good deal? Read on for some pointers. But first, get to know why there are cheap foreclosure properties. Why Banks Foreclosed: The major reason why banks foreclosed a property is the inability of the owner to pay his due mortgages. You need to take note of this so that, if you are considering to buy bank owned homes for sale, you will not make the same mistake that previous owners have made that resulted to them losing their homes to foreclosures. Failure to pay may be due to some reasons that are unavoidable. On the side of the banks, they do not want to foreclose on a property, because it will be a non-performing asset and, thus, will not bring in any revenue. And besides, they have to pay for the taxes and upkeep of the property while it is still on the market. Selling the foreclosed property at below their current market value is the best thing they could do to dispose the property immediately and recover their investments. Assessing the Value: One way to assess the value of a foreclosed property is to check out the neighborhood. Do some research about the pricing trend of houses in the neighborhood. Compare the price of the property that you want to buy with the same houses in the neighborhood. Take note of the fluctuation in housing prices in the neighborhood, because this will tell you how soon you can sell the property for a substantial profit. The location of the property is also a major factor to assess. Houses located in a progressive area will not be difficult to sell in the future. In a nutshell, choosing should not be based on the price alone. Location is also a major factor to consider.