Saturday, July 7, 2007

Good Advice For The Upcoming Financial Apocalypse


Three Ways to Protect Your Money
Uncle Sam is not going to rescue you. So what can you do to lessen the risk to your own portfolio? Here’s what Sound Of Cannons recommends:
1. Don’t risk more of your net worth than you need to. If you’re young and aggressive with a long-term time horizon, that’s one thing. If you’re older, retired or close to retirement, or have a shorter-term horizon, think realistically, not just optimistically. How would you feel if – even temporarily – we went through a severe selloff in the market? Think about it – and govern yourself accordingly.


2. Diversify your assets beyond stocks into high-quality bonds, real estate, gold shares, commodities and inflation-adjusted Treasuries.


3. Run trailing stops behind each of your individual stock positions. This gives you unlimited upside potential while strictly limiting your downside risk.

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