Last Updated Feb 1, 2011 5:10 PM EST
The political unrest in Egypt has many people seeking answers regarding what this means for their portfolios. Here are some of the headlines I've seen:
- Can Egypt Take the World's Markets Down?
- Weighing the Week Ahead: Investing During a Time of Turmoil
- Egypt: Why the Markets Care
- Egyptian Turmoil Generates Wide Economic Effect
The point isn't that these crises are unimportant. These events are entirely outside of our control, so there's no point in worrying about them as far as our investments are concerned. What you should do instead is focus on what you can control:
- The amount of risk you're taking
- The costs of your investments
- The tax efficiency of your portfolio
- Remember your plan and why you chose your allocations.
- Adjust your plan to more appropriately consider your ability, willingness and need to take risk.
If you're still worried about what this will mean, ask yourself what great investors such as Warren Buffett would do, and remember Buffett's classic line about investors: "They should try to be fearful when others are greedy, and greedy when others are fearful."
More on MoneyWatch:
Should Current Events Affect Your Asset Allocation?
Lessons Learned from the Greek Tragedy
The State of the Municipal Bond Market
Is Inflation Risk Overstated?
The Death of Buy and Hold
Hear Larry Swedroe discuss current investment trends and topics every Sunday at noon on 550 AM KTRS in St. Louis or streaming via the KTRS Web site. Can't catch the show? Download the podcast via www.investmentadvisornow.com or through the Buckingham Asset Management podcast page on iTunes.