What should investors do? (DELL,Oracle,Sun Micro) From USA Today.
Look for value. When prices are high, it doesn't hurt to try to find stocks that have been scuffed up a bit. Albers, whose Guardian Park Avenue Fund has soared 5,163% since its inception vs. 2,268% for the S&P 500, has been tilting his portfolio toward large, well-known companies that have been knocked around. He believes stocks such as Oracle, Sun Microsystems and Dell are attractive now.
If you don't like picking your own stocks, look for a stock mutual fund that searches for value stocks, such as Gabelli Value, up 44% this year, or FAM Value, up 36%.
Stay diversified. That doesn't mean buying 12 stock funds, although you should have a few different types of funds. But it's not a bad idea to keep some money in cash or bond funds.
Stay with the plan. If you're investing for a long-term goal - one that's at least 10 years or more away - don't worry about year-to-year gyrations. But if you are approaching your goal, make sure you have the cash you'll need shortly in money market funds or certificates of deposit, in case the stock market takes a dive.
Above all, be sure your expectations are reasonable. The stock market has averaged a 10.6% gain per year the past 70 years. Don't expect more.
By John Waggoner, USA TODAY |
