New Haven, CT (WTNH)- The volatile global stock market is a rocky way to end the summer for investors. It has been a roller coaster ride for the markets.
Experts tell News 8 at one point the DOW was down 1,000 points. While things are looking better some investors are panicking. Arthur Granucci said, “I think everyone is worried about their investment because it affects real-estate too no matter where it is.” In a shocking move the Chinese government devalued its currency. Bob Porter with Quinnipiac University said when the currency is devalued that makes chinese exports cheaper for US buyers by stimulating chinese exports but it is also stimulating US imports and competing with domestic goods.
News 8 viewer, Len from New Haven asked our expert, “to what extent does China multiply our risk?” Professor Bob Porter with the School of business at Quinnipiac University said, “China’s impact on risk is the competitive factor to the extent China becomes more competitive and the Us has a harder time competing with them so that will in effect slow economic growth.” Tanmay Manlhar asked, “should I be thinking about investing right now?” Porter said, “yes, I think it is a good time to invest. Your returns over time are going to average out to be a pretty solid return the basic US economy is certainly strong.” Our expert has 8 tips on how to be a smart investor.
1. Create a diversified portfolio, don’t put all your eggs in one basket!
2. Allocate your assets based on your risk tolerance
3. find a money manager or buy a mutual fund which is staffed by money managers
4. Do your homework on the individual mutual funds.
5. Review your allocations on a annual basis.
6. Invest your money today. A dollar today will be worth more than a dollar in the future.
7. Set up an investment program and put the same amount of money away every month and increase it from time to time.
8. Don’t overreact or worry about the ups and downs in the market.