Five dirty words you can’t say in personal finance

Anyone watching the stock market s opening implosion on Tuesday morning couldn t miss the commentators regular use of curse words.

No, they were not swearing as the stock market fell by about 465 points off the open, but they were using the dirty words of personal finance, the ones that often curse the masses to financial self-destruction, the dirty words that seemingly have been on everyone s tongue over the last few weeks as stock market turmoil has ordinary folks ready to abandon long-term plans in favor of safe havens.

Ironically, the bad words should give investors a clue that the commentary they are getting may be leading them astray. That s why it s imperative to face the current market upheaval with an eye and ear out for the following dirty words: now, next, must, top and best. Here s a guide to the five bad words, the siren songs they tend to sing, and why investors should put up their guard whenever they hear them: 1.

Now, as in Given what has been happening on the market, what is an investor to do now? Truth be told, most people aren t investing for now, they re looking ahead anywhere from five to 55 years. Reacting to the present situation makes for good television and radio, but it s largely ignored by the financial advisers and by people trying to build lifetime portfolios.