Stock Market Plummets: Don’t Panic
I know it is difficult to keep cool when the stock market goes down over 3% in a day and many stocks dropping over 6%. However, if you are an investor you have to see this as an opportunity, not a crisis.
Unlike many terribly bad days in the stock market this day was caused by internal glitches in the actual trading system. Of course, China’s stock market going down 9% in a day off its all-time high had reverberations. Keep in mind that many economic figures are positive and the day was nothing like 20 years when the stock market lost over 22% in one day’s trading.
The market will probably go further down today, but if you begin to build a position in any stock in the long run you have a good chance of making money.
I know last June I thought the stock market was due for a correction, but I do not necessarily think this was what I was predicting. I thought it would because of poor economic numbers combined with a world crisis.
Written by Nagel on February 28th, 2007 with no comments.
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