SEARCHING YOUR INVESTMENT SOUL

I would differ with the other responders because in my experience they are jumping the gun. Before you do any type of investing--and I mean ANY investing, think about your risk tolerance level but also of how you can really internalize crises and reactions in your own experience to determine your risk level. One thing is a profile based on age, health, expenses and family responsibilities. I remember years ago a very nice middle aged gent who wanted to invest $2,000 per month every month for a few years towards retirement. His wife was with him and she never said anything. A few months later the guy returned and sheepishly said he needed to amend his plan because he was getting ery worried. It tuns out he was paying $1,500 per month for his sister in law to stay in a nursing home in another state. He had never mentioned it to me because he "didn't think it was important." He said "if I lose money on my investments and have to place my wife's sister in a county home she will kill me." Think about a significant amount in your life//perhaps a thousand dollars or ten thousand or $100,000. HOW WOULD YOU FEEL OPENING A NEWSPAPER OR CHECKING ON LINE IN SIX MONTHS AND SEEING THAT TWENTY PERCENT OF THE VALUE IS GONE. INVESTMENTS ARE DOWN. I find about 70 per cent of folks say it is okay, thinks go in cycles, they don't check the numbers eery single day, and things will bounce back in quality environments. But 30 per cent of folks do check every penny of their balance every day and tell me they "get migraines or become physically ill" whdn a $100,000 investment drops to $80,000. This includes some folks who call themselves "sophisticated" traders and investors. If after soul seaching you really must admit you ae in the 30 per cent think long and hard about doing anything other than bank CDs or short-term investment grade fixed income instruments.