Buy Low Sell High – The DOW Dropped Below 10,000 Again
Yesterday the DOW dropped below 10,000. A lot of people are worried that this trend is something we should fear. I think it is something we should learn from.
My personal observations suggest that the stock market is not following the same trends the rest of society is. After the market dropped so low after the Real Estate Crash, It started almost immediately moving back up rather quickly. Some of this was because the Government was helping it and other reasons included investors needing to work and do their jobs.
The market didn’t look anything like what we were doing as the public. We were afraid to spend any money because we were and still are afraid to loose out jobs. We are holding on to our money for an emergency. We are worried that the other boot will drop at any moment. This is hurting retail all over the United States.
Yesterday the DOW dropped below 10,000 points for the first time in three months (at least that is what I read. You know how reliable information in the internet can be.) I am wondering if that would be a sign for us to add more money into mutual funds and IRAs. If the rest of the market is dropping, maybe we should take the opportunity to buy low.
Don’t get me wrong, I don’t know a lot about stock investing, but if things happen like I think they will, we will have the ability of make money when the market goes back up to 12 and 13,000 points.
Why do I think the market will get that high? It is the trend of our market. We have dumped a lot of money into our economy and when it decided to adjust itself, this hyper-inflation everyone thinks will happen will help the market to go up. At least that is the way I see it.
Now the only problem I see is that most people don’t have the extra money to put into the market. They are too busy trying to pay for the debt they have already accrued.
Make a comment and let me know what your thoughts are on the subject.
Here is my disclaimer. I am not a money professional. Do not take my advice as anything more than an opinion. I don’t want to be held accountable for anything that might not happen with your money. Please speak with your financial advisors to see what you should do with your money. Just ask them what they think of my ideas. Have a great day.



February 9th, 2010 at 7:07 pm
I know barely anything about investing. What I do know is, the best long-term plan is to put your money in and leave it there. Markets will always fluctuate over time. But if you make conservative, long-term moves, it’ll pay off in the end.
February 10th, 2010 at 9:12 am
This is definately true. You leave it in and hope the market is up when you are ready to retire. What I would love to do is to put even more into the market when these drops happen. If I had the extra money that is.