The stock market fell another 369.88 points today. So what?
While I am sure people will greatly disagree with me, I believe that the stock market has become nothing more than a giant gambling scheme where everyone has forgotten the most basic principle. The stock market is a long term investment, and short term hiccups should be ignored.
While I understand there are those out there that need to move mass volumes of shares for funds and so on, for individual investors, you should always take the view that any stock is a long term situation. Occasional bumps in the road, no matter how long they may last, need to be viewed in the overall long term projections you set for yourself when you purchased the stock.
Am I some sort of economic and financial whiz? Heck no, but this is one mantra I have lived by for eons. Admittedly I have been out of the stock market for quite some time personally (I owned Wal-Mart for years until it seemed to go into an almost 2 year stall), and my parents got out some time back after some success, but the one rule we all lived by was, “Oh well, the market dipped, we aren’t in this for short term gains.”
This also brings up a point about the major indices that has always driven me mad: they are not the final say to the economic health of the nation. If it was, why did it not start falling long before the failures began to happen? Wouldn’t all these great “analysts” have seen it coming and inested more conservatively? No, they showed once again that the market is more controlled by emotions than by actual facts and analysis. The market is in freefall, but that does not mean the every day consumer is.
If anything, I would be more prone to buy right now than anything. I’m not, but if I had money to be gambling with (come on folks, it IS gambling, it’s just very fancy gambling), I would be eying a lot of different stocks right now. Yes, things are bad NOW, but this is mostly shake out of people that are just plain nervous. Give it a few weeks and every one will begin regaining their senses, and while the market won’t boom, it will stabilize and people will start focusing on the things in the country that need the real fixing.
In the meanwhile, please don’t go investing in comic books.