Matt Golab of Aaron Matthews Financial Resources, Radio Host and Financial Authority discusses the hacking of the Associated Press, the recent market volatility, and how to create a balanced portfolio.
PR Log - Apr 27, 2013 - Recently computer hackers got into the Associated Press's Twitter account and posted a fake message about an attack on the White House and that President Obama was injured. With the attack on Boston just a number of days before it is no wonder the announcement was taken seriously. However, within a few minutes the Associated Press announced the twitter comment was a fake and they had been hacked.
In just those few minutes however stocks sold of sharply, causing the S&P 500 to sell of fast, if you at charts from that day you can see clearly when the news hit. This sharp reaction caused a loss of nearly $200 billion in equity value.
This underscores two things;
One is the market is very volatile and is not the best place to bet your monthly income
The other thing it points out is the sharp drop was temporary.
You might be asking why is that important. When the stocks sold off people reacted in panic, but after the report turned out to be false investors realized there was no underlying flaw in the belief about the stocks they owned.
It also shows what temporary and short term spikes in volatility can do "to" and "for" investors portfolios. If your accounts are passive which means you buy a stock or mutual fund and hold in while checking in every great one in a while you could suffer the wrath of short term volatility and miss out on opportunities. However, if your accounts have eyes on them and proactively managed, temporary and short term spikes in volatility can provide opportunities each and every day. Markets can make stocks and positions undervalued each and every day. Traders over react to news and panic volatility can put positions up at a deep discount.
It's a good idea to have your accounts proactively managed by an exclusively dedicated management team to be watching for these opportunities each and every day. An investment management team that manages money for large institutions and the day to day consumer gives them an added insight than the day trader broker up the street from your house. A specialized team can really tilt the odds in your portfolios favor.
Matt Golab was recruited to write a chapter in Tom Hopkins upcoming book, Victory scheduled to be released later this year. Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle, Newsweek, TheSmartRetiree, Burlington County Times and soon will be appearing nationwide on ABC, CBS, Fox, and NBC as well as USA Today. Contact information for Matt is available at his website,
www.aaronmatthewsfinancial.com
Read Full Story - How to Lose $200 Billion in 2 Minutes | More news from this source
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In just those few minutes however stocks sold of sharply, causing the S&P 500 to sell of fast, if you at charts from that day you can see clearly when the news hit. This sharp reaction caused a loss of nearly $200 billion in equity value.
This underscores two things;
One is the market is very volatile and is not the best place to bet your monthly income
The other thing it points out is the sharp drop was temporary.
You might be asking why is that important. When the stocks sold off people reacted in panic, but after the report turned out to be false investors realized there was no underlying flaw in the belief about the stocks they owned.
It also shows what temporary and short term spikes in volatility can do "to" and "for" investors portfolios. If your accounts are passive which means you buy a stock or mutual fund and hold in while checking in every great one in a while you could suffer the wrath of short term volatility and miss out on opportunities. However, if your accounts have eyes on them and proactively managed, temporary and short term spikes in volatility can provide opportunities each and every day. Markets can make stocks and positions undervalued each and every day. Traders over react to news and panic volatility can put positions up at a deep discount.
It's a good idea to have your accounts proactively managed by an exclusively dedicated management team to be watching for these opportunities each and every day. An investment management team that manages money for large institutions and the day to day consumer gives them an added insight than the day trader broker up the street from your house. A specialized team can really tilt the odds in your portfolios favor.
Matt Golab was recruited to write a chapter in Tom Hopkins upcoming book, Victory scheduled to be released later this year. Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle, Newsweek, TheSmartRetiree, Burlington County Times and soon will be appearing nationwide on ABC, CBS, Fox, and NBC as well as USA Today. Contact information for Matt is available at his website,
www.aaronmatthewsfinancial.com
Read Full Story - How to Lose $200 Billion in 2 Minutes | More news from this source
Press release distribution by PRLog
