BLOGNAME: LOUDER THAN WORDSAn informal, stream-of-consciousness reflection on business ideas, events and issues in modern business, modern life and with some specifics to the web-software industry by Paul Tomori, Internet Entrepreneur
|It's A Bad Day In The Market?|
Not If You're Doing It Right
By Paul Tomori
Thursday, August 18, 2011 at 12:07:17 (EDT)
So, today the stock market is way down again... and that makes it a "bad day in the market" right? All the talking heads are saying that. But here's another perspective. Imagine your favourite retail store has your favourite product on sale at a steep discount. Would that be a bad day? So, why is it a bad day when the stock market presents your favourite stock at a steeply lower price? Wouldn't that be a "good day"?
You already own a chunk of your favourite stock? And the price is down bringing your investment down? Buy more - you'll average the cost of your investment down. It's still a good day.
Now, this is all presuming you are picking good stocks.
And, it presumes you have a long enough investment window. But, if you're doing it right, then as you get near retirement, your exposure to price drops should be mitigated by reduced allocation of stock in your portfolio, right?
So, no, the sky is not falling today. It's nothing but an opportune time for buying.
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