The charlatans in the financial markets media have been spreading fear about Chinese politics, and how they're devaluing their currency right now. Do you know someone that's been taking part in the hand wringing? Are you suffering from whiplash while watching your stock portfolio over the last 10 or 15 days? I find that the best way to track a market is to have at least some money invested in it. I've watched the limited stock portfolio I have do the Harlem Shake over the past few days, and it's interesting to read all of the stock pundits' reactions.
My knee jerk reaction is to come on here and tell everybody that they need to take control of their portfolio. "Sell your stocks and buy real estate!" But I'm not sure that's my real goal. More than anything, I think we need to understand our portfolios. If your securities broker sent you an email this week telling you that China is launching a hostile attack via their currency and markets, make sure that they clarify for you what that means. How does that change their overall outlook on the market? What can you do in the next 3, 6, or 12 months to protect yourself and be ready if it gets worse? Sure, you can't control the stock market in the same way you can affect the real estate you own, but we've seen that real estate is subject to market forces just as much as anything else. Figure out what your risk tolerance is. Limit your exposure, and only invest in things that you understand. Don't understand how to protect and grow your net worth using real estate? Give me a call. Let's talk.
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