Don’t Panic
The financial markets have certainly provided us with an interesting ride recently. While I generally ignore the financial news, preferring to take a longer-term approach to investing, I must admit that this is big news. Big enough news to justify some commentary here.
My thought has to be: Don’t Panic.
The markets will recover; our larger economy will in the end be strong.
Individuals loose tremendous sums of money through panic. They loose tremendous sums of money through following the herd. Much less frequent are those individuals who make tremendous sums of money by doing the opposite of the majority, by being contrarians. That is what we must seek to do. Buy while things are low, certainly don’t sell, never panic. That is the key to building long term wealth.
As for me, this week, I bought stock. It is a perfect time.
If we don’t allow ourselves to get caught up in the panic, if we take a long term approach to our investing we will get through these temporary financial market problems without issue. In fact, if we can do the above, we stand an exceptionally good chance of making great profits in our portfolio, and that is certainly what it’s all about.
Comments
Ms Milliscent
Yes i agree that panic is the worst thing that one can do. It has been proven thru time that panic in any emergency creates unintended disaster.
However i do beleive that one should keep a careful eye out , I mean... this is a nation with over a ten trillion doller debt, it is also a country contantly running its budget hundreds of billions in the red.
Couple that with the socialist/ green take over of the nations wealth of natural resourses, and i cannot figure for the life of me where the money for this payoff/bailout is coming from!!
Tax dollers?? what a joke !! that money is already spent... perhaps the U.S.A will be put up on the auction block to China.
Ol Lenin was right ... America will be taken down without firing a shot.
But the sun will come up again, and americans can watch their reality shows, go see millionaires play games with balls in huge stadiums. and all in all be just fat, happy, content and ( dare i say ) average.
So yes....no need to panic.
deepest respects rebecca
Posted by: rebecca | October 16, 2008 4:06 AM
rebecca,
I do agree with you that debt is a fundamental problem in our economy. Debt from the individual level all the way up to the Federal Government.
That said, I don't think that the problem is insurmountable. American business is an amazing engine, and will overcome whatever problems are currently facing us. Provided of course that the government doesn't interfere so much that business becomes crippled.
I am bullish on the future, and bullish on the market long term. I don't think that one can go wrong investing properly in the American economy right now.
M
Posted by: Milliscent | October 17, 2008 12:25 PM