VOLATILE MARKETS The third quarter of 1998 has brought about significant concern with investors, in that many have lost significant amounts of money. However, it appears that investors have in essence have become very spoiled in such signicant growths in the DOW. When the market goes down a bit we panic not remembering the significant growth we have seen trough 1995, 1996, 1997, and the first part of 1998. We must always consider the reality that over the last 40 years the market has brought at least 10% returns. Although the current market it is troublesome, we must consider our investments for the long term. There are those who may be closer to retirement who should reconsider their portfolios to reflect shorter time frames. Although the market has gone down significantly I look at this decline as a positive. There is not a better time to buy into stocks and mutual funds at such a low price.
Although the market has had significant declines, we must consider the reality that we are ahead of where we were 2, 5, and 10 years ago.
Good resource to read.
"HOW TO MAKE MONEY IN STOCKS" William Oneal