Investment Article Critiques (2) Essay Example | Topics and Well Written Essays - 1250 words

Investment Article Critiques (2) - Essay pillowcaseThese are Mutual funds with a variant dollar cost averaging. Currently many investors get under ones skin made the decision to go to property until the market stabilizes. Many have seen their mutual funds right anywhere between 25% and 50% over the past years and are gun jump to reinvest at the moment leaving $8.85 trillion dollars in cash (Martin & Tsang, 2009, p. F3).The two approaches are to put apiece(prenominal) your money in at once at take the risk that it will rise or fall or, as with the variant of dollar cost averaging a certain percentage of the investors money is invested each month for the next five or six months. (2009, p.13) This plunder help mitigate the all at once regularity by using the average of the several timed investments to create a improve percentage of return overall. However, both require a certain amount of overall risk in this particular market and while dollar cost averaging may help, if the m arket has not stabilized or bottomed out yet, both methods could still result in short term losses. While cash may still be king for some time yet, the only tried and true method of investment is, Dont Panic as most down markets have proven the turnaround, if you can wait for it, far outweighs any reinvestment strategies in the long run.As mentioned in the previous article check into there is over $8.85 trillion dollars in cash floating around in various accounts interchangeable money markets and bank deposit accounts, earning rock bottom interest, many as low as .1% annually. However, as investors see it, it is safe from the market at this time. The current Federal Reserve data states that this is, equal to 74 percent of the market value of U.S. companies, the highest ratio since 1990. (2009, p. F3) Talk about a real stimulus portion Martin and Tsang review several investments that have beaten the odds in 2008 and made money and offer this as the stimulus to investors to qualm