Three Things You Should Do In A Turbulent Stock Market

Three Things You Should Do In A Falling Stock Market

Three Things You Should Do In A Falling Stock MarketThere have been some turbulence in the stock market recently.  There are been more days than not that have seen a hundred point swing one way or another. But, you shouldn’t fear a falling stock market.

So may even think that the US stock market is in a financial crisis. So, what is an investor to do during a turbulent, falling stock market?

3 Things To Do In A Falling Stock Market

Tune Out All Of The Noise

One thing that I do that many people do not understand is that I don’t watch the news. There is so much negative press out there that I often will get bummed out with all the news.

And, now with hundreds of television stations and many dedicated strictly for financial news, there are so many people out there with an opinion about a falling stock market. Everyone has an idea or a thought on where the market is headed, why things are happening the way they are, and of course what you should do. And, do nothing is hardly ever on that list.

It is hard to earn a commission or capture people’s attention if you tell them to do nothing. But, often that is exactly what you should be doing…nothing.

So, turn off the television. Tune out the noise. There is so much noise out there.

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You Should Work On Your Finances Every Day

You Should Work On Your Finances Every Day
You Should Work On Your Finances Every Day

You Should Work On Your Finances Every DayDo you have money troubles? I can remember being over my head in credit card debt after college. I ended up burying my head in the sand so I wouldn’t have to deal with it too. You have to work on your finances every day.

How often do you think about your finances? Or, do you stick your head in the sand and just continue spending money you don’t have?

How often do you think about your budget or tweak it? Do you follow the news of companies you own stock in? Do you know what the mutual fund managers of your funds are doing or thinking?

If you focus on your finances a little bit each day, you will be able to handle and understand them better than ever. I’m not talking about buying and selling stocks everyday or watching their prices like a hawk. I’m talking about raising your financial IQ.

Work On Your Finances Every Day

You Are Good At What You Practice

The Tipping PointThe Tipping PointIt may not exactly be fun to everyone, and it may invoke memories of piano lessons of our youth. But, you are good at what you practice every day. Malcolm Gladwell is famous for pointing out in his awesome book, The Tipping Point, that it takes about 10,000 hours of practice at any one activity to become an expert at it.

So, all of you aspiring guitar players should definitely keep at it. The same is, of course, true for your finances. You have to practice to be good at it. What do I mean by practice? When was the last time you calculated your net worth? When was the last time you followed the stocks or mutual funds that you own in your retirement accounts?

Do you know the mutual funds top holdings and their rationale for it? Do you listen to conference calls of the companies you own stock in? It is not rocket science, but doing one small task each day will keep your finances in the forefront of your mind.

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Send Me Your Money Questions for a Free Book

Send me your money questions about personal finance, investing, retirement, etc. If I pick your question and answer it here on the blog, I’ll send you a free copy of Dave Ramsey‘s book, “The Total Money Makeover”. Got Money Questions? Do you have a money question that you would love for us to tackle in our weekly blog post series “Reader’s Question”? Email us your money questions to If we pick your question to be featured, then we will mail you a free copy of Dave Ramsey’s book, “The Total Money Makeover” as a way of saying thanks! Do you already have a copy of Dave’s book? I don’t doubt it if you love reading about money and finances as … Read more

Should You Buy Penny Stocks? Why You Should Resist the Temptation!

penny stock

Many investors are drawn to buy penny stocks because they believe they can obtain a sizable gain on their investment. Therefore, the term, penny stock, is often synonymous with a micro-cap stock. Micro-cap stocks have a market capitalization which is the total market value of a company’s shares that are outstanding of $50 million to $300 million. Companies with market capitalizations of $50 million or less are hazardous and are classified as nano caps. Cap is short for capitalization. Some investors are drawn to the idea of quick, sizable profits when they invest in penny stocks. After all, it is pretty tempting to think that you can buy 50,000 shares with only a $500 investment. But, regardless of how small … Read more

What Is A Stock Split? And Should You Trade Before One?

What Is A Stock Split?

get in on the hottest iposA stock split is a tactical decision and action made by any publicly traded company’s board of directors that increases the number of existing shares by splitting or dividing the shares into more shares.

What Is A Stock Split?

At first glance, it is a positive thing to investors and stock shareholders since their number of shares owned will increase. But, in reality, a stock split is not a value adding event. It doesn’t detract the value either.

A stock split is just an accounting sleight of hand that increases the number of shares while maintaining the same overall value. The underlying value of a shareholder’s share is not changed at all by a stock split.

Nevertheless, a stock split is usually conducted at a time where the value of certain shares become way too high for new investors or are convincingly higher than other similar companies’ stock share prices.

This way, anyone who wishes to buy shares from a company is able to do so at lower costs since each share’s value is divided in certain multiples.

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Why Do Companies Carry So Much Cash On Their Balance Sheets?

A balance sheet of a company is where records of how much money the company has, how much debt it owes, and what is the remaining amount for the stockholders. It is a financial statement that lets investors know where the company stands with its financial accounts. If you want to keep track of how well the company you have invested in is doing and if they are in good status, you might want to check out those companies’ balance sheets. How Balance Sheets Are Constructed But if you are new to looking at these things, it is important to know something about balance sheets. The first thing you will see and notice in a balance sheet is the asset … Read more