Cry From the Hilltops, Jump From the Roof

OK, maybe I'm being a little dramatic. But probably not by much. Since the close of the market last Friday, we've seen a 7% drop in asset value (over 800 points) in three days. Obviously such a pace can not continue, but the volatility is certainly enough to give the stoic some pause.

The message this week: don't watch the news, cancel your subscription to the Journal, don't dare open up any financial website, and stop talking to the lady down the street who seems to always be walking her dog. If you sequester yourself, you might actually keep your nerves from fraying out of control.

The market will recover, it always does. In the meantime, only check your stock prices if you intend to purchase more. There are some amazing bargains out there and I don't mean the major risky shares such as AIG. Stick with the fundamentals, the following points might help some:

1. Timing doesn't work, dollar cost average into your holdings
2. Only invest in sound companies with strong balance sheets and profits to count on
3. Dividends are the answer to all problems, but the added cash flow is reason to consider companies that provide dividends
4. Never hold more than 5% of your portfolio in a single issue
5. Never, never hold more than 10% of your portfolio in a single sector
6. Tend toward EFTs if you want to invest but don't know where: SPY, DIA, QQQQ, etc

Surely, the next post will bring better tidings...