Re: Market down 450+ pts
The other fault with this email is the math. Do the math. 85,000,000,000 divided by 200,000,000 is $425 bucks, not $425,000. We already got stimulus' checks for more than $425 so that wipes that out.
The market is full of over reaction, speculation etc. This is why there are safeguards built into the market if it goes down a certain %. Did you know that if it goes down 10%, the market shuts off portions for a set period of time? Its to prohibit A) fear B) panic and C) people driving prices down (i.e. short selling) for profit and fueling a collapse. There are rules and regs in place to help take care of this.
Edit: They are called cicuit breakers. Here is a pretty simple explanation
Does it suck that the market is down alot? Yes, i have money in there, and we all are tied to it to some degree. But it will correct itself, whether it be pushed by the bailout or over long periods of time. Dont forget that about a year or so ago, we hit the biggest boom in history by going from 12,000 to 13,000 on the Dow in over a month ( i believe). So it goes both ways.
The market over long periods of time averages a return of approx 8%. When companies run hypotheticals on market returns over 40 years of time, there are years where the market is up 10%, years its down 22% and years its flat. So while this one year or time period is down, its A) not unprecendented and B) expected in the grand scheme.
I know alot of people hear about day trading and how "sexy" it is but over the long haul it will be fine. Thats what 99% of us are, long term investors. Personal gain, 401(k), employee matched company stock, its all long term. Weather the storm in the short term, use any buy/sell opportunity, any gain/loss opportunity as a learning tool
The bail out will eventually pass, it will be structured properly. I'd rather they get it right and wait a week and bolster the economy than rush out a turd sandwich that helps it now, but leaves us in another lurch in 3-5 years.
The other fault with this email is the math. Do the math. 85,000,000,000 divided by 200,000,000 is $425 bucks, not $425,000. We already got stimulus' checks for more than $425 so that wipes that out.
The market is full of over reaction, speculation etc. This is why there are safeguards built into the market if it goes down a certain %. Did you know that if it goes down 10%, the market shuts off portions for a set period of time? Its to prohibit A) fear B) panic and C) people driving prices down (i.e. short selling) for profit and fueling a collapse. There are rules and regs in place to help take care of this.
Edit: They are called cicuit breakers. Here is a pretty simple explanation
Does it suck that the market is down alot? Yes, i have money in there, and we all are tied to it to some degree. But it will correct itself, whether it be pushed by the bailout or over long periods of time. Dont forget that about a year or so ago, we hit the biggest boom in history by going from 12,000 to 13,000 on the Dow in over a month ( i believe). So it goes both ways.
The market over long periods of time averages a return of approx 8%. When companies run hypotheticals on market returns over 40 years of time, there are years where the market is up 10%, years its down 22% and years its flat. So while this one year or time period is down, its A) not unprecendented and B) expected in the grand scheme.
I know alot of people hear about day trading and how "sexy" it is but over the long haul it will be fine. Thats what 99% of us are, long term investors. Personal gain, 401(k), employee matched company stock, its all long term. Weather the storm in the short term, use any buy/sell opportunity, any gain/loss opportunity as a learning tool
The bail out will eventually pass, it will be structured properly. I'd rather they get it right and wait a week and bolster the economy than rush out a turd sandwich that helps it now, but leaves us in another lurch in 3-5 years.
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