{"id":24454,"date":"2011-10-13T10:15:00","date_gmt":"2011-10-13T14:15:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/10\/13\/don%e2%80%99t-run-scared-just-reduce-risk\/"},"modified":"2011-10-13T10:15:00","modified_gmt":"2011-10-13T14:15:00","slug":"dont-run-scared-just-reduce-risk","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/10\/13\/dont-run-scared-just-reduce-risk\/","title":{"rendered":"Don\u2019t Run Scared, Just Reduce Risk"},"content":{"rendered":"

Don’t Run Scared, Just Reduce Risk<\/a><\/p>\n

by Jason Jenkins<\/a>, Investment U<\/em> Research
\nThursday, October 13, 2011<\/p>\n

Now is not the time to follow the crowd.<\/p>\n

It’s times like these when strategy wins out over mentality. We’ve seen what the herd mentality can do to overall markets historically and over the past few years in particular.<\/p>\n

The herd tells you that every piece of positive information out of Germany and France should cause a rally. And then a day or two later, Greece still doesn’t hit its austerity measures and the Slovakian government votes not to expand a 440-billion euro bailout fund, throwing a monkey wrench into the EU’s crusade to contain its sovereign debt crisis.<\/p>\n

Everyone yells, “Sell!” and money is funneled into Treasuries with a return of less than two percent. Save yourself the heart attack of this rollercoaster ride. This is a time when trusted strategies can deliver peace of mind.<\/p>\n

Reducing Investment Risk With Dividends
\n<\/strong><\/p>\n

No one has a clear view of how this market is going to work out so drastic reallocation every other day isn’t going to work. What you should be looking to do now is reduce risk \u2013 gaining the best possible return for the lowest amount of risk.<\/p>\n

If you are focusing on large, dividend-paying multinational corporations, you can get the best of both worlds. As I wrote last week, many multinational stocks<\/a> are benefiting from record-level profit margins, lower cost of debt, and long-term global demand from emerging economies.<\/p>\n

For example, take a look at these three dividend bellwethers:<\/p>\n