I realize many of you have questions about what to do with your portfolios (and what we are doing with the portfolios on Zacks Elite).
First, don't panic.
Though the proposed bailout failed to pass on the first vote, House leaders are working on getting a second vote. If held, this vote may not occur until Thursday because of Rosh Hashanah, the Jewish New Year.
Second, continue to research stocks. Look for fundamentally sound companies with rising earnings estimates that are trading at attractive valuations. Even if you want to hold off on buying new stocks, you should at least have an updated shopping list ready. This is what successful investors do.
We looked at several potential candidates for the Focus List from various industries earlier this afternoon. We do not have a set date for adding these stocks, but we are actively monitoring them.
Third, understand that it is okay to reduce your exposure to stocks. Consider selling anything that is keeping you up at night. Don't get completely out of the market, however, because a recovery rally could occur at anytime.
We will continue to execute stop losses within the Zacks Elite portfolios as needed, while maintaining diversified portfolios.
There is a lot of uncertainty right now, but we will get through this. Even though the current bear market is painful, stocks remain the best vehicle for building long-term wealth.
Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst
Zacks.com
Charles Rotblut is the Vice President of Web Content for Zacks Investment Research and the Senior Market Analyst for Zacks.com. He oversees the editorial staff, manages the market-beating Focus List, Timely Buys and Top 10 portfolios, and plays an instrumental role in the development of new products. For more information, visit www.zacks.com.
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