As several of Wall Street's most storied firms have been forced to close up shop over the course of the past few weeks, many investors are now left wondering what to do next.However, a truly savvy individual could find some bright spots amid all of the turmoil.
Boston.com spoke with several successful investors and got their perspectives on how to weather the storm.
Mohamed El-Erian, co-chief executive of Pacific Investment Management Company, cited funds that own government-guaranteed mortgages but offer a higher return than the government does.
Peter Lynch, the former manager of Fidelity's flagship Magellan mutual fund, tells the Globe that the average investor should not focus on trying to choose individual stocks without extensive market knowledge and research.
"The term 'play the market' has done so much damage," he says.
The better strategy, he suggests, is to get to know a few companies very well. That more specialized knowledge would allow the investor to understand the movement of the prices of those stocks.
Even though some stocks may seem as though they are on sale right now, it can be very difficult for a person who has not done a lot of research to determine which ones will bounce back and which ones are headed for more long-term decline.
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--Bridget O'Sullivan
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