Mustafa

MustafaSo what should you do if you're worried about a default? Five things to keep in mind: 1. Don't abandon your long-term plan. Most investors who had diversified portfolios in 2008 and stuck with them have made up their losses, despite a 57 percent drop in the Standard & Poor's 500 from its peak in October 2007 to the market bottom in March 2009. Investors who panicked and withdrew their money from the stock market have found it tougher to recover.


Don't get waffled around emotionally by all of this short- term noise," said Michael Farr , chief investment officer of Farr, Miller & Washington, an investment firm in Washington, D.C. 2. Be wary of bonds. Conservative investors who sought to avoid the volatility of the stock market and flocked into bonds could get burned. A default could drive up the cost of government borrowing for years to come and lead to higher interest rates for everyone else. Investors should also steer clear of Treasury notes with a maturity of 10 years or longer because their prices might face steep price declines as interest rates climb. Bank CDs are another option, although the yields

Mustafa