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What's The Investment Advice For 2009?

With the markets in the doldrums, it's difficult to predict what they will be like in 2009...

It's difficult to predict what the markets will be like in 2009, but giventhe realities of the global recession and a slowdown in the market, it would besafe to say it will be bearish and volatile. 

Corporate India is definitely already showing signs of a slowdown. Costcutting and conservatism has already become a priority. At the same time, mostcorporate honchos are anticipating that things will turn around from the secondquarter onwards. 

The mantra for the year, regardless of your risk profile has to be acontingency fund. Large enough to tide you over for at least three months.Something that will smooth the rough spots in case of a pay cut, increment lossor worse still, a job loss. 

The other thing financial planners are advising is to ensure that you haveadequate personal health coverage and aren't solely dependent on your companyproviding it for you. 

Most financial planners will advise against major changes in asset allocationstrategy since investment should be long term. 

At the same time, with the market going down, financial planners say this isa good time to increase equity to bring the value back in line with your plannedasset allocation. And pay off any pending loans you might have while the goingis still good.

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