Kobliner: Small Investors Should 'Shut Their Eyes'
BILL HEMMER, CNN ANCHOR: Making the most of your money always important. We know that and we can all use good advice about our personal finances. Our guest today has been writing and speaking on personal finances for more than 10 years now. Beth Kobliner, author of the best seller "Get a Financial Life." I wish I could. Good morning to you, Beth. Nice to see you in Atlanta.</s>BETH KOBLINER, FINANCIAL JOURNALIST: Good morning. Nice to see you. Great to be here.</s>HEMMER: What do you tell small investors who are on this Fed watch, who are checking their 401(k), watching their portfolio, their stocks and mutual funds? what advice do you have for them who are waiting for a decision such as we have seen here with the Fed.</s>KOBLINER: Well, I would say, for the vast majority of small investors, they should shut their eyes, turn off their television, except for CNN of course, put down their papers, and not pay attention to this. Look, people should be having, particularly for their 401(k) money, this long-term money, money that they should have in a diversified portfolio of stocks, and not pay attention to the blips, ups and downs. This is concern for the day traders, and it is concern for people who are shopping for a mortgage because they are see whether their interest rates go up. But otherwise, I say people shouldn't pay attention to it.</s>HEMMER: Easier said than done, huh? If you listen to Alan Greenspan talk, he gives a lot of attention to the employment report. That's due out next Friday, is this a bigger indicator next week than what we are watching today with the Fed meeting?</s>KOBLINER: I think that's one, certainly, a big indicator. But the Fed looks at so many different parameters. You know, they are looking at unemployment, they are looking at the economy, the growth, the productivity. So I think that's one area that is certainly to watch. But again, for small investors, I think we have to step back, take a deep breath, and figure out what we are doing with our portfolios, not watching the minute by minute changes of the Fed.</s>HEMMER: Six straight rate increases from the Fed, do we know if the it is working?</s>KOBLINER: Well, it is hard to say. You know, inflation is still pretty low, and there are concerns about what it is going to be -- mean long term. I think we don't know. I think we are watching and people are very anxious today, and will be in terms of the numbers coming out.</s>HEMMER: All right, it is 9:20 a.m. on the East Coast, five hours away, 2:15 Eastern time. Beth Kobliner, thanks again.</s>KOBLINER: Great to see you.</s>HEMMER: "Get a Financial Life." We certainly will. Again, the Fed announcement 2:15 later today Eastern time. We have live coverage when it all shakes down then. Beth, again, thanks.