What the experts say

Market mistakes to avoid in 2012; New pay plans for financial advice; Lean times for bank stocks

Market mistakes to avoid in 2012

Investors would be wise to avoid four key mistakes heading into the New Year, said John F. Wasik in Reuters.com. First, even though the 2011 market delivered a “herky-jerky ride,” don’t sit 2012 out. “The ‘all in or all out’ approach will deprive you of profits,” especially from unexpected quarters. Second, don’t ignore inflation. Protect your portfolio with Treasury Inflation-Protected Securities, which pay a premium based on increases to the cost of living. Third, make a goals statement that will govern your investing strategy, whether you’re saving for retirement or college. Finally, don’t try to time the market. You’re “competing with light-speed robo-traders,” and “volatility is now the rule rather than the exception.” Hedging risk and having predetermined goals will position you for healthy returns.

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