We've just had more excitement in the stock market than we've had since "Black Monday" or "The Crash of '87." The exciting date was just ten years and a week since the market fell 20 per cent on a single day in October 1987. Several books and PhD's could be written about this latest excitement where the market fell a similar amount of "points" in a single day, but really only fell about one third or 7 per cent in total value compared to what it did in 1987.
I've debated for a week on where to start or what to write about. I think the first thing is to assess the damage. If you were investing in the high flyers then you, like me, probably took some heavy damage last month. If you did as suggested in my April Did you feel awful and/or were unable to sleep at night worrying about your investment? If yes, then you should consider not investing in the stock market and invest somewhere safer so you can sleep at nights and carry on a normal life. Some worry is fine, but you have to be the judge. Did you panic and sell right after the market reopened the first time? If so, then you probably lost a good deal of money as many stocks have roared back. Consider changing your panic level or don't invest in the stock market unless you wish to continue to lose money. Did you get concerned, possibly calling your broker, financial advisor or recalculating your net worth every five minutes? If so and you held on realizing all would be fine, hopefully, and you had a fair night's sleep, then you did well and are a normal investor. It is no fun to see 7 per cent of your net worth evaporate in a few hours. It is much more fun to spend it, for sure. Did you smile, wink at a few close friends and try to time a bottom, picking up some bargain priced stock? If so and even if the stock still hasn't gone up, then you are a seasoned investor and did well. Some of us even sold some high P/E stocks BEFORE the crash and had cash waiting for a "correction" and went shopping and were actually HAPPY that day. My lady friend didn't want to come over that night thinking I'd be upset and no fun so I amazed her with my good mood.
Go To Page: 1 2
