How safe ismy low risk portfolio. the economy is getting so bad I'm getting real nervous.?

Question

Should I hang on to what I have or get rid of ev erything before it gets worse. I have mutual funds and other low risk funds.

Answer 1

You give no indication of what funds you have, or more importantly your "asset allocation".

If your "asset allocation" model was designed with your "time horizon" and "risk tolerance"........ all you have to do is re-balance your portfolio once or twice a year.

BTW: Mutual Funds are not necessarily "low risk", they do (usually) spread out your risk.... again the important thing is your "asset allocation".

Answer 2

I can't advise on your portfolio. However, markets do go up and down in cycles. Its just that markets have been going up for a long time everyone becomes over confident and possibly careless in there investments (I'm not saying you have ). However the current turmoil in the world economy is exasperated by the fluctuating price of oil take this away things would settle down. Which I believe will happen towards end of next year.

This is a tricky Q to answer but markets do bounce back as do company stock. I dare say its a good time to by as prices are cheap!!! . I'd say  ride out the turmoil be  patient things will eventually return to normal- not for a while though.