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Five mistakes investors should avoid during a financial crisis

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With the Dow falling 777 points and Congress opting to not enact the $770 billion bailout, investors need help to avoid further financial hardships.

In today’s market, people sell when it is time to buy and invest when it is time to sell. Fortunately, Stuart Kruse, the founder of Kruse Asset Management, lists five common investment mistakes that will cost you money, in hopes to help the declining situation.

  1. Do not panic, the world is not coming to end. Most stocks are actually doing well since the July 15 lows.
  2. Hold off on selling. Though the decline in the market seems never ending, beware of selling before a market upswing.
  3. Not buying. Warren Buffet buys during crisis and today, he is investing billions in the firms many are running from.
  4. Listening to media hype. The media is interested in increased viewers and will highlight extreme situations with experts holding dramatic views. Be informed–the latest crisis may not affect your long-tern goals.
  5. Becoming emotionally invested. Emotional decision making leads to poor choices.

Waiting on a signal will leave investors with a missed opportunity to capitalize on the bounce back.


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