By Doreen Marion Gee

Trillions of dollars and millions of jobs are on the line as global leaders scramble to recover from the worst economic crisis since the Great Depression. The clock is ticking as major financial institutions and industry giants teeter on the verge of bankruptcy. The crisis that began with the sharp decline in housing in the United States has proceeded to infect economies throughout the world due to a large degree by Wall Street’s excesses and blunders, dragging the US and much of the world into recession.

Overstatement and drama appear to be woven into the very DNA of market commentary these days. Outrageous commentary is hardly new, but in an age of “always –on” 24/7 communication, the constant drum of sensationalized messages is very stressful for many people. This is the first of two articles examining the current financial crisis that aims to help give you some perspective. The next article will provide you with timely ideas that you can use to emerge stronger financially.

I can’t tell you when this will end or exactly how things will look from an economic or regulatory standpoint when we come out the other side of this crisis. Which, we will. What I can say is that capitalism as we know it is facing one of its biggest challenges. Economic principles that gained acceptance and widespread use across most of the world over the past 30 years are being tested.

Which, we will. What I can say is that capitalism as we know it is facing one of its biggest challenges. Economic principles that gained acceptance and widespread use across most of the world over the past 30 years are being tested.

Where should you invest? The answer isn’t as easy or straightforward as it seems. This kind of question really is so dependant on your own personal financial circumstances and perspective on risk that you should meet with a professional financial advisor to determine an appropriate mix of investments for you. What I can tell you is that the tsunami of financial information engulfing investors in these volatile times makes it more important than ever to have a well-designed investment strategy and to follow it.

Consider for a moment the impression created by hyperactive Jim Cramer, host of CNBC’s famous “Mad Money” show. During his show on September 22, 2008, when the US government was announcing their first draft of the financial bailout plan Jim warned “If this doesn’t work we’re going to have Great Depression II.” He repeated this doom and gloom prediction no less than 4 times during his one-hour show.

Scary headlines aren’t new:

Time magazine declared it “The Worst Economic Conditions Since the Depression” on their cover in June 1970.

August 13, 1979 cover of Business Week which trumpeted an article called “The Death of Equities.”

And of course my favorite, by Barbara Rudolph in the February 20, 1989 issue of Time magazine, “THE S&L MESS: Bush’s $200 Billion Bailout.”

As you may recall, stocks rose from the grave not long thereafter in all three instances.

According to Wharton Professor Jeremy Siegel in his book, “Stocks for the Long Run” stocks returned an average of 6.5 to 7 percent per year after inflation for the 200 year period between 1802 and 2002.

Successful investing really requires filtering out useless information and focusing on what really matters. The perception of heightened risk really makes us want to act. The internet is an unfiltered channel for an uncountable number of forums and bloggers whose education, competence and motives are hidden behind their e-mail addresses.

Instead of hiding your head in the sand, now is the time to focus and think "excellence." An experienced and professional advisor can work with you to understand your financial situation, help you define long-term objectives, and provide a reality check in challenging times. A great place to start if you’re looking for a new advisor is with a trusted professional like your accountant who knows your situation. They see so many situations that most have a number of advisors they could suggest you interview.

It is very easy to get emotional with your money given all the dramatic headlines. However, dramatic headlines can tend to indicate a great buying opportunity. It is important to get impartial and professional advice. It’s your money and that’s why you may be too close to the situation to think clearly. Volatile markets and overly complex investment choices may make it difficult for you to evaluate the benefits of various investments and retirement plans on your own. For many people, finding the time and energy to focus on reviewing your investments or finding a new advisor is extremely difficult. All the more reason to take action now. The cost of procrastination can have a substantial impact on your retirement plans.

Remember, a ship in the harbour is “safe” but that’s not what ships are for.

© April Dorey. April is an Investment Advisor with Raymond James. Articles, statistics and other data referred to or cited are intended to provide readers with potentially useful information for their own personal use and are not intended to replace direct consultation from a qualified Investment Advisor or related certified/licensed professional. All comments and opinions, unless otherwise noted, are by April Dorey and express the opinions of the author and not necessarily those of Raymond James. Raymond James Ltd. Member CIPF. Reproduction without permission is permitted with due acknowledgement.