Excerpts taken from The News Herald online on Tuesday, August 18, 2009
Written by Shawn Bumgardner

photo by jameshannan

Has Wall Street hit rock bottom, and is the U.S. economy bound for recovery?

Some claim the worst is over, which is of small comfort to American investors, many of whom have seen their retirement portfolios quickly drop in value during the last 18 months.

Just as the stock market crash of 1929 and the Great Depression had a lasting impact on those who lived through it, our current recession could change the way Americans earn, save, invest and spend money. The question is how will we improve our individual and shared financial future?

We all make choices. The tanking economy has triggered all kinds of responses. Some investors have simply pulled the plug on their remaining investments. However, a mass exodus from the stock market will do more damage to the economy as a whole.

The other problem with this approach is that once you sell a stock, you forfeit any opportunity to regain the value you lost.

Some investors are paralyzed by fear and have not corrected or adjusted their financial position in the marketplace. While this is a common and natural response, it’s not necessarily in your best interest to stand still.

Whether you ultimately move or adjust your stocks, it’s important to take time to evaluate your investment positions and make changes as you see fit, all the while proceeding with due caution.

Buy low if you can bear the risk

This suggestion might seem counterintuitive, but if you are in a position to accept risk, right now is a great time to invest. The market is full of bargains, and there will be people who can profit from the market’s downfall.

As the old adage goes, buy low and sell high. But as recent history shows, investing involves risks — more than many of us bargained for — and there are no guarantees.

Consult with a financial advisor

Now more than ever, investors can benefit from the insights of an experienced financial advisor who can help you sort through your options.

As survivors of the recession, we can potentially work even harder, adjust our expectations and appreciate what we have.

Much of the success or failure of the stock market relies on something intangible — buyer confidence. If we can find our way back to confident investing, we could be on our way to a stronger economy.

Visit The News Herald online to read the entire article.