Hi David, I believe the global slump so far this year has "surprised" the bulls. What would you advise investors who have existing positions in stocks do right now?

David Fuller's view

Thanks for a question of general interest.

I think experienced investors should follow their own instincts and judgements, which are often very good.  Whatever you do, expect a bumpy ride which you have already seen over the last year and counting.

If you have a good, unleveraged portfolio, paying some reasonable yields, I would not be too worried.  However, if you have some stocks which you feel uncomfortable with, you may wish to weed those out and reinvest the cash by upgrading your portfolio in the likely event of some further weakness. 

Over the longer term, I think reasonably valued stocks will do very well, for reasons which I have often mentioned in my long-term Friday Audios.  However, investors are being buffeted by plenty of unsettling news at this time.  This hurts portfolios but it also creates further buying opportunities.