With a weak economy many investors may panic. Some investors may be tempted to take their money out of the stock market, but the stock market remains a good long term vehicle for creating wealth if you can navigate the stormy times. Often when the market is tanking, opportunities present themselves to the astute investor. The key is not to panic. Instructions:

1. Diversify your holdings. In a volatile market it is hard to determine which stock will do well. In any market there will be some stocks which will outperform the market. and others that will lag. Rather than placing all your money on one or a few stocks, spread your risk around by investing smaller amounts among a broad range of asset classes.
2. Have a longer term perspective for your stock investments. When the economy is not growing strongly, companies and stock prices are also not likely to grow at a fast rate. So you need to lower your expectations and have a longer term perspective on your investment. Stocks have historically performed well over a long period of time such as 10 years or more despite turbulence in the shorter term.
3. Consider dollar cost averaging. Dollar cost averaging is investing a set amount of money at regular intervals. When the market is down you will be able to purchase more shares and lower your overall costs. Dollar cost averaging also helps you become more disciplined by investing regularly in spite of what the stock market is doing.
4. Invest for income. Look for stocks that are stable and pay a good dividend. While the stock may not rise in value very fast, you will still be able to receive income while you wait for the stock to recover. You can use the income to offset your short term loss or to buy additional shares.
5. Consider investing a portion of your portfolio in cash. When the market is volatile you may be more defensive to preserve your principal. You may want to put a portion of your portfolio in cash. When the market is crashing, cash investments such as money market funds, and certificate of deposits are a attractive alternative. You will sleep better at night and you can move your investment from cash back into stocks when the market recovers.

Please contact us at Evergreen Capital Management for a free personal consultation which will help you understand today's markets, and how you may profit from them.