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NEW YORK (AP) - It's their house, but you don't have to live by their rules. Wall Street can't seem to make up its mind about the risks posed by rising mortgage defaults; one day it seems fearful and the next, the market seems to cast off doubt and move higher. But the average investor need not be so indecisive.
While the fluctuations might leave some individual investors exasperated and unsure of what to do, it could also serve as a lesson in diversification — the best play for regular investors might just be to avoid trying to anticipate every move in the market.
Indeed, Wall Street's up-one-day-down-the-next mentality owes in part to recurring concerns about the threat posed by subprime loans gone bad — and the fact that investors at times find the extent of the problem difficult to quantify.
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