Was the American stock market plunge reason to be nervous or just a buying opportunity?
Question by Common Joe: Was the American stock marketplace plunge reason to be nervous or just a purchasing possibility?
1 of the reasons I asked was also because I am still a rookie at investing and desired to hear some opinions. I’m as green as can be when it comes to stock market investing, and I recognize folks lost plenty of money, but is the drop actually a explanation to be nervous? I recognize it’s a sign there may well be a alter in the lending market, but is this a purpose to be nervous about investing in the stock market or to start off trading all your stocks? I suggest it’s not like the America is an unstable country. It’s no explanation to start off pulling all of your income out of the stock marketplace, appropriate? This is a proven market place that should stabilize itself in a while, no? Is this just an opportunity to get inexpensive stocks?
Chime in on the stock industry plunge?
Greatest answer:
Solution by packinrat
The planet is not steady and the US market is closely tie to the world. Cash is shifting to the bond market place and less volatile commodities.
Attempt a substantial development foreign marketplace and leave the US market place to the pros for appropriate now.
What do you assume? Answer below!
Yes, and yes.
Plunges in the market have historically been a good time to invest. Now, it also depends on where you invest as well.
There certainly is reason to believe that stocks might get cheaper still. America is not so stable as you might have imagined. It is fueled by debt. Now that debt has become shall we say unstable, the fuel supply might be facing an interruption. This might just be the beginning. On the plus side most corporations are fairly healthy and stock valuations are not out of line with reality. But none of that will really matter all that much if people stop spending, which there are indications that they are.
Here’s my take: there are investors that are bulls and investors that are bears. The volume of trading lately has been extremely high compared to past volume levels. The news has been all over the map and investors interpret each bit of news the way they want. This leads to high market volatility.
If you are not able to follow the market closely, now is probably not the time to have your money in the market. Simply move your money into fixed rate accounts and wait this out. If you can survive the immense swings day-to-day, you can make lots of money with the volatility. It takes lots of homework on the stocks you own. If you have done the homework, you will know what to do with your holdings.
Ron, ChFC