That kind of talk is what the professionals have been waiting to hear. That has caused most of the problems over the past year. Now investors, stung badly by the decline, are beginning to listen. The tide has changed. Diversification is now the watchword.
Stuff is cheap.
This approach is particularly smart for investors in their 20s and 30s who have time to make up any losses and to benefit from bargain stock prices. If I was in my 20s, I just might be loading up right now. Len Budney of Springdale, Pa., is one of those young investors who welcome the downturn. In each case, the money grew at an annual rate of return of between 17 percent and 18 percent. Essentially, you have two options and neither is particularly rosy, says Brown.