Suppose you went out to your garage late one night and saw a huge snake coiled up in the corner. If you grabbed a shovel and gave it a few good whacks, you might feel pleased with yourself. But if you turned on the light and found that you’d just cut your garden hose in half, you might feel a little sheepish. Unfortunately, too many frightened investors are taking a shovel to their stock portfolios right now. Worse still, their investment advisors are goading them on.

Oxford Club investment director Alexander Green says government intervention to shore up money markets should ensure your cash is safe… for now. But this doesn’t mean the financial crisis is over. Confidence has been severely damaged, and the healing process is only just beginning…

There are a lot of scared investors out there right now. That’s why gold prices closed up $70 yesterday and US stocks got slammed.

However, Oxford Club investment director Alexander Green says allowing fear to dictate your investment decisions is asking for trouble. This credit crisis looks like it will be extremely painful, but the worst thing you can do now is panic sell. If you investing in solid companies, they will still be solid companies when this crisis is a distant blip on the radar.

Instead, investors need to stick to a simple plan: Buy quality, diversify assets broadly and think long term.

Managing the taxes on your portfolio is a crucial part of investing, says The Oxford Club’s investment director Alexander Green. Following a few simple guidelines can significantly improve the returns you make. The priority is to put the most tax-inefficient investments – such as real estate investment trusts (REITs) and bonds – in a retirement plan.

Americans’ views on the general state of the country have hit an all-time low, with 81 percent saying the prospects for the United States are declining… the worst-ever number for this barometer. Some will argue that this just reflects the current economic slowdown or the monumental unpopularity of President Bush.

Even the most savvy investors have been stung by this year’s equity meltdown. Warren Buffett’s investment vehicle, Berkshire Hathaway (NYSE:BRK.A, BRK.B), is down 24% from its peak in December 2007.

Alexander Green says BRK’s drop creates an outstanding buying opportunity. Buffett has an unrivaled track record as an investor. He has always followed a disciplined value-based strategy. And this still holds true today.

BRK.B shares are trading at $3,860, down from a 52-week high of $5,059. This makes them a no-brainer buy right now.

Take everyone over 15 in your household to see Addison Wiggin’s new movie I.O.U.S.A. at your local theater, says Investment U’s Alexander Green. Alexander says the documentary, which tackles the issue of the record $53-trillion U.S. national debt, is “an eye-opening experience” and “a wake-up call.”

Alexander Green’s last column on crude oil prices generated a number of interesting responses. If you recall, he mentioned that crude oil’s pullback from a high of more than $147 a barrel in early July was long overdue. With demand decreasing and supply increasing, oil is doing exactly what you’d expect it to do – drop…

What a difference a month makes. On July 11, New York’s main crude oil contract was swapping hands for $147.27 a barrel. Today, the same contract is trading at just over $113.50 a barrel.

Meanwhile, the Energy Information Administration says US oil demand during the first half of 2008 saw its biggest decline in 26 years.

What’s in store for crude oil prices now? There are good reasons to believe they will keep coming down, according to Alexander Green at InvestmentU.com.

OPEC nations, reports the Financial Times, earned as much in the first half of this year as they did in the whole of 2007.

According to the report, member nations pocketed a staggering $645 billion in the first six months of 2008, just under the record $671 billion they earned last year. This puts OPEC nations on track to earn a record $1,245 billion this year, despite the recent 20 percent drop in oil prices, as any price drop will be offset by an increase in demand.

Profit Hunter’s Manraaj Singh calls it the “biggest transfer in history.”