Stocks And The Current Global Debt Crisis

While most people understand the current global debt crisis is a serious matter, many investors may still be thinking along these lines: 1. Companies are healthy right now, 2. Earnings are fine, 3. Dividend stocks do well in a bear market and 4. My investments are not directly impacted by government debt.

While there is some truth to the statements above, it is vitally important for investors to (a) remember the domino effects that occurred in the economy and financial markets during the mortgage and housing crisis, and (b) to have a specific risk management or "stop loss" strategy in place for all their investments.

Source: Safe Haven

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