Don't Panic!

The US market is down big today. The Dow is down by over 200 plus points. Lots of bad news this week making everyone jittery.
- Bomb blast in Pakistan kills 100 people in Bhutto procession.
- Turkey continues to saber rattle. Saying they will send troops into northern Iraq to fight Kurdish separatists.
- Oil hits $90/barrel record high this week
- Bank of America reports lower profit due to exposure to subprime and bad investment banking moves.

So what to do? Sell your mutual funds and stocks? From my experience, DONT PANIC!

It's not a good idea to make drastic BUY or SELL moves during turbulent days. Just review your holdings, and review why you hold these investments. If you are investing for the very long term, ie for your retirement 10,20, 30 years away, then stay calm.

Are you diversified?
Are you too concentrated, and have huge sums in a single company stock? Then consider the fate of Enron employees. Learn from history and don't repeat it.
Are you too arrogant? Do you think that you know more about making money in stocks than Buffet, and those professionals in Wall Street?

It's not good to be trading when you are agitated. As long as you are diversified and your investments are not concentrated, then it should be fine.