I’ll start off by saying, I’m not an investor. I don’t pretend to know the complexities but I have read enough and taken courses to have some slight idea in the matter.
Over the past 12 months, the Dow Jones index fell from a high of 14,000 to less than 8,000. More specifically, in the last month alone, 3,000 points were lost. People who are selling now are losing their shirts.
Quick backstory, the US economy has been in an upswing for 15 years. This is unnatural, especially after the IT bubble burst in 2000. The economy should have corrected itself but the government propped it up to avoid a mini-recession. It’s like supporting a house with a crumbling foundation with sand. Holds for a bit but if it gets wet, everything goes. Well, I’ve been saying for 2 years now that the housing/mortgage issue is going to destroy the US, here we are…
The silver lining in all of this is such. When it finishes tanking (6 months or so) there will be huge opportunities for long term investments in sound businesses. Renewable fuels? Yessir. Grains? You betcha. Bio research? Nothing but the best. Intangible, insoluable items? Hell’s no!
When everything is scraping the bottom, that’s the time to find the diamonds in the rough.