Released: September 15, 2008

What changes in financial world mean to customers

Source: Ron Lieber and Tara Siegel Bernard, New York Times (Free Registration)

One clear implication of the tumult in the financial world is that some of the biggest brains in the business, from the Federal Reserve to Wall Street, have no idea what will happen next or how to respond.

So you are forgiven if you found yourself panicking as two Wall Street firms fell victim on Monday and the stock market took the biggest one-day fall in seven years. It’s incredibly difficult to predict where the markets are headed in the coming weeks.

As for the long term, it rarely makes sense to sell everything or to stop contributing to a 401(k) in the hope of knowing when the market has hit bottom and it is time to invest again.

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