Money Matters story idea: Protect yourself from market flu

February 22, 2013 01:30

To protect yourself from catching the market's ills, experts say inoculating yourself against panic is the best prescription. A common reaction by smaller investors to market downturns is to pull out of the market to avoid further losses. But experts say that approach flies in the face of the famous "buy low, sell high" maxim, and that waiting for stocks to recover is nearly always the best choice.

Market downturns are common and in recent years, volatile changes have become more typical. For investors in it for the long haul, especially those saving for retirement rather than hoping to make a quick buck, patience is a virtue. Even after the long economic slowdown of the past few years, stocks have rebounded to near-record levels. Dividends and short-term returns took a hit, but the value of those investments left in place are back on the rise.

MarketWatch.com has more suggestions from finanical advisors to give your readers, listeners and viewers about avoiding catching a case of the stock market flu and keeping your portfolio healthy.