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Traders work at their desks at Frankfurt's stock exchange August 8, 2011. (KAI PFAFFENBACH/REUTERS/Kai Pfaffenbach)
Traders work at their desks at Frankfurt's stock exchange August 8, 2011. (KAI PFAFFENBACH/REUTERS/Kai Pfaffenbach)

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Rob Carrick on investing strategies for volatile times Add to ...

12:20

Rob Carrick - Yo, WI. I'll go with Door Number One. Wait it out. Selling may seem like a good move in the short term, but it won't a few years from now.

12:20

[Comment From Guest ]

If we have stocks and are long term then should we just sit tight and hold on?

12:21

Rob Carrick - Yes, affirmative and most certainly. We assume here that you own good stocks, and not speculative flotsam.

12:21

[Comment From Jeff ]

Is the recent plunge in the markets an over reaction to the US downgrade? Perhaps unfounded jitters?

12:23

Rob Carrick - Market reactions to events like the S&P downgrade are what they are. It's hard to say they're a proper or overdone reaction. That said, I think the downgrade was like putting an official stamp on a situation that we all knew existed. The U.S. has big debt problems. Who disputes that? In that light, I think the downgrade changes little and, thus, you could argue the stock market losses today are just emotions in play.

12:24

[Comment From Guest ]

So, it's a good time to buy... I like ETFs; how should I go about choosing a few as the markets fall?

12:25

Rob Carrick - Got just the thing for you. A little slideshow I put together on how to buy ETFs for your RRSP. A primer on ETFs in general.

http://www.theglobeandmail.com/globe-investor/personal-finance/rrsp/how-to-use-etfs-for-your-rrsp/article1881114/

12:25

[Comment From Sandy ]

Is there any one sector that you think has been relatively oversold in this market meltdown?

12:27

Rob Carrick - Sandy, I'm just back from two weeks vacation in South Africa, so I haven't had a chance to do too much drilling down into market data. That said, I notice resource stocks getting absolutely hammered. Slower economic growth or a recession could hurt these stocks in the near term, but if you're patient and can wait a while, they could reward you.

12:27

[Comment From Lori ]

I don't want to over-react right now, and know I should sit tight on the investments I already have... do you agree. Should I throw my money into gold for good measure?

12:29

Rob Carrick - Lori, I do agree. But throw more money into gold? Not sure that makes good sense. Now's the time to buy stuff that is down in price, not up. I figure most investors would be in good shape with a 5% weighting in gold, btw. Maybe up to 10% if you're a true believer. But the time to buy gold was a while ago.

12:29

[Comment From Guest ]

What would be your recommendation for RESP in these times. I have it sitting in cash for now and would like to take advantage of this market.

12:32

Rob Carrick - First, kudos to you for asking about RESP investing. I dont think nearly enough parents are taking advantage of registered education savings plans. The answer to your question depends on how old your child is. If he or she is a baby, then investing mainly in stocks or equity funds makes sense. If your child is older, then you want a much more balanced approach. As your child approaches the age of attending college of university, you'll want to get very conservative so you're not dinged by events like we're seeing today. I think a big bank Canadian dividend fund makes a decent, easy to buy option for RESPs.

12:32

[Comment From Guest ]

If you don't need your money right now - is it smarter to leave your investments untouched and hold out for better days? My money is in a mix of mid to high risk mutual funds.

12:33

Rob Carrick - Leave the money untouched. If you have a well thought out, properly diversified portfolio with a risk level appropriate to your needs, then let it ride.

12:34

[Comment From Jean ]

Rob I have to start using my RRSPs possibly as early as next year. If they decrease dramatically in value I am going to be in serious financial trouble. I've considered rolling them into GICs ... your input would be appreciated ..thanks

12:37

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