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Stay Cool When the Markets Get Nervous

April 18, 2013 | About:

As you might have noticed, the markets are still undecided. A steady up and down leads the market. New news of a bad economic figure leads the market into another direction.

The quarter season results are mixed for my private assets. Some beat the market and others disappointed. Some said that the spring was too cold and they generated weaker sales. Today, British American tobacco announced such news.

In total these risks are balanced for my own portfolio. I would say that I have a bigger risk in the foreign currency USD. Every cent the dollar gets weaker, I lose a few thousand dollars only by a different currency conversion.

The good thing is that the fears of investors result in a stronger dollar. If the world economy gets weaker or the problems within the euro zone rise, the dollar gets stronger and compensates for all my stock price losses. If I have a good day, the dollar gains more than the stock market loses and I get overcompensated.

Well, back to the current situation. If the markets go down for a few days by a five or more percent and the financial press post big depressions on their channels, don't care about them. You have researched all fundamentals of your company and you've done a good job in analyzing the world economy with all the pros and cons. Don’t change your investment allocation if nothing has changed.


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GuruFocus has detected 4 Warning Signs with British American Tobacco PLC $BTI.
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