RRJ1

Reading reaction journal 1
Reference:
Young.L September 11, 2009 “Survival Stories and Lessons from the Crash”. Retrieved October 28 2009 from http://www.businessweek.com/investor/content/sep2009/pi20090911_940812_page_2.htm
Summary:
After Lehman’s bankruptcy, there were hundreds of thousands of investors facing financial problems. First of all, you should not own more than 10% of your employer’s stock in your portfolio. Second, don’t buy more houses than you can afford. Additionally, the money we can spend is the money we actually have, that is, never over-budget. Also, we should amass a cash stash in order to have bigger emergency funds in case a tragedy happens. Furthermore, tune out the noise and make your own opinion. At last, keep it in perspective. Finding a reputable financial planner could probably lead you away from this nightmare. Through these survival stories and lessons, the author shares financial wisdom learned in the past year.

Reaction
The author began with providing several investors’ and employees’ failed stories in the stock-market crash which came after Lehman’s bankruptcy. From these bad experiences, the author tried to find strategies to avoid similar situations happened again. But in my view’s point, there are three factors we should acquaint while applying these lessons in your future investing decision. Obviously, the author ignored the lack of basic financial knowledge for individual investors. Furthermore, in fact, find a reputable financial planner will not promise to make things better. At last, the author tend to avoid mention market risk and investment risk that investor should afford by themselves.