I have the power!

As I was typing my post about investing this morning, the DJIA was down about 600 points.  Shortly after I posted, it was back up 500.

I have the power!  Listen to me and become rich!

Seriously though, my point is this: stocks tend to fluctuate.  If you always look at the daily ups and downs, you will go insane.  Take a big picture look.  The DJIA is higher today than it was shortly after 9/11.  It is a LOT higher than it was during the last similar downturn in 1987.  Yes, it is a lot lower than it was a year ago, but odds are it will be back up to 2007 levels before it drops down to 1987 levels.

Right now, prices are dropping because people are panic-selling.  These people are insane.  They sell, demand drops, supply increases, so prices fall.  That means you should be BUYING.  Not selling.  When prices are high, that's when you should be selling.

Buy low.  Sell high.  See how this works?

Let companies run by idiots go out of business.  That clears the way for new companies to emerge and fill the void.  New companies can compete and the strongest, best run companies will take over market shares.  Buy into them now, before the prices are jacked up.

Every long term investor who knows anything about anything is loving this.  LOVING this!

Comments

[Yomi Mizuhara]

If I had 2 pennies to rub together, I'd get in on the firesale of communications stock, including Westwood One, Citadel, and others.

But, I'm still unemployed and people just don't seem to be interested.