If you’re watching the news, you know that Russia moved forces into the Crimea region of Ukraine yesterday (Monday, 3 Mar 14). Now, I generally don’t recommend that you should check your investments daily, but if you did yesterday you probably heard a lot of news about how “bad” the “market” did. But did it really?
Well, the following are some of the investments that did poorly yesterday…
- The S&P 500 was down
- Most European stock indexes were down
- Asian stock indexes didn’t do much better either
But, on the other hand…
- Gold was up (around 2%)
- US Treasuries were up
- The dollar was up versus other currencies
- Real Estate (as indicated by REITs) was generally up
So what is the point? First off, don’t look at daily gyrations of the “market”. Remember, the financial presses are in the business of selling advertising…not sound advice. And if you just can’t help yourself remember that if you portfolio is properly diversified, then you may have some winners to go along with your losers and it probably isn’t as bad as the news would make you think. Just a reminder though…there is no guarantee that a diversified portfolio will prevent loss.