If you’re like most investors, in the last few months you sold your stocks at the bottom and bought gold at the height or bought T-bills or stowed your money in a savings account. But the only successful response to a market decline is to buy; it’s always been a poor move to sell equities when everyone is in a state of panic. My advice is to take the cash you’ve stuck under your mattress and buy equities.  Here’s why:  96% of the 10-year periods since 1926 have been positive and 89% of the time, equities performed better than bonds.  Given these probabilities, the rational decision is that if you’re investing for  the long run, at least 50% of your money should be in a diversified portfolio of domestic and international equities. That’s the way to benefit from this crisis:  Buy low, stop watching the market on a daily basis and then rebalance to return to your desired equity allocation (in this example, 50%).

Here are some usefull links relating to this post :

Q :  Can you please provide specific and concrete steps for releasing the  limiting beliefs around money I currently have and replacing them with new and expansive beliefs.

A : The first thing is to become aware of your feelings during every financial transaction you make:  investing, saving, spending, talking about what dinner cost, giving your kids their allowance, responding to a charitable request.  What is your belief about money in every situation?

Now ask yourself:  what would your life be like without that limiting belief?  The answer to that question will be the seed for the creation ofa new curative money message.

Some blogs I found about Money Beliefs :

I know that my house fluctuates in value.  But I don’t stand in front of my house  month-by-month or day-by-day, let alone minute to minute watching a tickertape of my home’s value going up and down.  We all know that house values fluctuate, especially during a natural disaster like a hurricane or an earthquake.  But because I have no knowledge of the actual decrease, I don’t think about selling my house as it decreases in value.   I think, instead, that I’ll be in my house for a long time and the house value will recover over time.  Thankfully, there is no one to tell me how much my house is worth on a daily basis!  Knowing that information would, at best, ruin my sleep and at worst, provoke me to react in a financially self-destructive way.

Unfortunately, the information on the daily movements of my investment portfolio IS available to me.  Most of my money invested in the stock market is there to cover my expenses in the next 15-50 years; therefore, for some reason I think it’s critical for me to know how my portfolio is doing minute to minute.  When I log on to  financial websites or listen to the news with up-to-the-minute information on the market, the news has the illusion of being useful.  And the media is being paid by advertisers to convince us that the information IS relevant.

Some articles on Real Estate :

Question : Given the current state of affairs even on the international financial scene, what considerations should I give to investing my $50k? Is this a bad time for any new investing? (my wife and I are brand new to anything more than money market funds)

Spencer : The funny thing about the financial markets is that it is possible to make an absolute statement:  Buying low has ALWAYS been a successful strategy.  Not sometimes, always.  Given that guarantee, you have an amazing opportunity right now to buy companies at a huge discount.

Some articles of interest  :

Answer : First, keep in mind that these markets can come back completely. Impulsive moves may be too reactive.  If you’re planning to draw money during retirement over a 20+ year period, I do not recommend any changes to your plans. In my book I offera step-by-step approach for allocating your money.  It’s about buying what’s low and selling what’s high.  That’s the way to make money.  And keep contributing money.  So many people stop contributing when the market goes down.  This is irrational!  Keep contributing and contribute even more when the market is low.  Find work that you love so that even if you don’t have sufficient funds to retire, you’ll enjoy what  you do. 

More on the financial Crisis :