Don't Overreact to Market Woes

With the stock market recently experiencing the worst week in about five years we're seeing some investors make some big mistakes. A lot of people are selling off their stock holdings in favor for more conservative investments, but is that wise? Generally you don't want to react drastically to events in the market when you are planning for a long-term goal such as retirement. For some people, the best option is to invest in asset allocation funds. These funds are already diversified and tailored toward a specific investment goal which reduces the noise in the market and can allow you to sleep better at night.