By: Sarah E. Horner
April 20, 2009
In an article from CNNMoney.com, Gengler, Rosato and Yang discuss how to face some of the worst case scenarios head on. First, they discuss the stock market, buying and selling stocks is all based on timing but even if you think you enter the stock market at the perfect time there is still a significant amount of risk involved. In order to circumvent these high risk situations, the article advises people to turn towards high-yield bonds.
Another troubling situation they discuss is inflation, the reccomendation is to invest in a diversified fund that invests in commodity-producing companies that can give you a hedge against rising prices without the extreme volatility of other investments that reduce the risks of inflation.
Next they discuss the scary issue of mortgages, asking the scary question if walking away from your mortgage ever makes sence. What if you have to turn down a better job in a different city because your mortgage is in such bad shape you cannot sell your house. CNNMoney, says that sometimes, the best option is to walk away. While there are many implications you must consider before making this decision, if your mortgage is keeping you from living your life, you must find a way to do something.
The article goes on to discuss some other scary issues that many families may very well have to face especially if the economy continues to degrade further into the current depression. To read all of CNNMoney’s tip in facing your fears face on, click here.
References:
http://money.cnn.com/2009/04/20/news/economy/depression_economy_survival.moneymag/index.htm?postversion=2009042006
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