Ken Dolan: Daria, we promised part two. We have to deliver our promises. Mistakes to avoid on a financial crisis. As you said before in part one sometimes you’re better off avoid stuff because it’s getting harder on a fixed stuff.
Daria Dolan: Yeah.
Ken Dolan: Alright, so give me a couple.
Daria Dolan: Well, that was always that way. It’s just now we’d simply we’re more costly.
Ken Dolan: How about if nothing goes wrong? How about not panicking?
Daria Dolan: Exactly. You’ve got it full.
Ken Dolan: If you cool turn off the cable networks.
Daria Dolan: And you know if you’ve got friends who are really making you nervous because of the way they’re going on about it just tell them, “Look what’s that something that we can enjoy doing together without talking about this? This is scaring me and I don’t want to be scared.”
Ken Dolan: When you go head I’ll just going to talk about the lady who called our radio show.
Daria Dolan: Go ahead Ken.
Ken Dolan: Yeah, and who said, “Dolans I need help in my IRA. I need help and discuss what I’ve done and could you help me do better in light of this crisis.” We say, “Of course, let us know.”
Well, I’ve got some mutual funds. I say, “Well listen, take a second. We’ll go to commercial break, go get your statement on the IRA and we’ll come back. We’ll sell some bread or something, and then we’ll come back and we’ll talk about it.” I don’t know what my statement is. That’s burying your head on the sand.
Daria Dolan: That’s absolutely, and burying your head on the sand is not going to help you out. What you need to be doing is looking if you still invest it and hopefully many of you took my advice and cut out before the real bad stuff story that happening, but if you still invest it then take a good look of what you’ve got. Make sure you understand that, and start to simplify.
Go with the basics. Stay with the stuff that you know will be there and that people will be buying like water.
Ken Dolan: Food.
Daria Dolan: You’re telling this.
Ken Dolan: We’re taking a lot of heat from the media. Daria and I are talking about CDs. That’s okay. I don’t care. Guaranteed.
Daria Dolan: Nobody ever got hurt in something that’s guaranteed.
Ken Dolan: And by the old song by Bobby McFerrin “Don’t worry, be happy. Things will be fine. It will all work out. We’ll get back on track.” Yes, we will but I would like you to have some money to invest when we get back on track.
Daria Dolan: And also be very careful right now because a lot of troubled institutions are trying to lure you in if they could cash in, so they can clean up their balance sheet when the Feds take a look at it by offering you unusual high rates of return.
Ken Dolan: Like on CD’s.
Daria Dolan: Here’s the kick if they don’t give enough of that money and they are unable to show up their statements and short enough order where they can stand on their own. Then the FDIC is either going to bring in another bank to take them over or take them over and pay off the accounts. If another entity comes in, they will not I guarantee you.
Ken Dolan: Kick those eye levels.
Daria Dolan: A take over bank is not going to pay the high rate of return that is probably one of the reasons why your bank went under.
Ken Dolan: You reminded me to often do, Daria of an important fact.
Daria Dolan: Okay.
Ken Dolan: Because of this crisis some banks are losing FDIC coverage and they are not telling everybody, so would you make up and put a star on this one. Check your bank at the FDIC coverage that they had, that they still have because every bank doesn’t have it and nobody will tell you but us.
Daria Dolan: Last mistake.
Ken Dolan: What?
Daria Dolan: Do not try to time this market.
Ken Dolan: When they go back the exact time?
Daria Dolan: Every business channel, every newspaper reporter is dealing with people from the street who are trying to say, “Yes, now is the time even more on buffet” It’s saying, “Now is the time to buy stocks.” Let me tell you to play in facts of life. The type of fall that we had in the Dow Jones Industrial could take us long as three years or three months for people to get back to where they were before it happens. That’s statistically what happens, so you don’t need to time the market right now by getting back in. You have three years and three months statistically.
Ken Dolan: On average?
Daria Dolan: On average that you have been. In any part of that time when you started seeing things looking much healthier and take a look at the close on the Dow Jones Industrial Average. Look at the value of numbers and check if the down number, down volume, D volume is much bigger than the U volume, the up volume. This trend is not over by a long shot.
Ken Dolan: So just be careful. Be conservative. Get your head out of the sand and act not react. We’ll all get through it together. Stay with us on Dolans.com. There’s plenty of other stuff we can discuss. Don’t listen to the pundits. Turn off the cable networks and get involved starting today.
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