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

Investment Article Critiques (2) - Essay ExampleThese are Mutual coin with a variant long horse cost averaging. Currently many investors have made the decision to go to cash until the market stabilizes. Many have seen their mutual funds decline anywhere between 25% and 50% over the past years and are gun shy to reinvest at the moment leaving $8.85 zillion dollars in cash (Martin & Tsang, 2009, p. F3).The two approaches are to put all your money in at once at take the risk that it will bone 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 can help mitigate the all at once method by using the average of the several timed investments to create a better 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 market has not stabilized or bottomed out yet, bot h methods could still result in short term losses. slice cash may still be king for some time yet, the only tried and true method of investment is, Dont terror 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 oblige review there is over $8.85 trillion dollars in cash floating around in various accounts like money markets and bank deposit accounts, earning rock n roll 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, bear upon to 74 percent of the market value of U.S. companies, the highest ratio since 1990. (2009, p. F3) Talk about a real stimulus package Martin and Tsang review several investments that have defeat the odds in 2008 and made money and offer this as the stimulus to investors to qualm