Will The Markets Ever Come Back?

Down Or Down & Out?

Many financial experts are claiming that the markets are down, but not down and out.   What’s the difference? Do you believe the experts?  Should you worry about your money?  Is your money worth anything?

Financial History Lesson|Boring But Promising

There is a correlation between America’s form of government, capitalism, and market crashes.

The intrinsic nature of capitalism leads to market crashes but also eventual rebounds.  According to these financial experts, the markets are running as usual; we are currently in an economic collapse but will see a rebound.   The fear is not if the markets will bounce back, but when.

What Causes Market Crashes?

Changes in federal government policies, government regulations and political events all effect the markets.

Lately that includes the passage of the Obama health care package, tax increases, the federal debt ceiling debate, the downgrading of the U.S by Standards & Poor, the elections next year, the straw polls in Iowa….all of those financial and political events shift the markets.

You as an investor cannot change any of those events, you can only adjust to the ramifications caused by them.

Blame The Media, They Did It

Market crashes and the mediaThe media contributes to market crashes.

They continually grind into the public how bad things are.  Tragedy sells, so the media pushes that button and the public listens and believes the worst.  Market spikes are based on panic, fear and uncertainty; the media helps promote that.

When the public feels cornered, they panic.    Market volatility based on fear causes investors to change their entire portfolios; to sell it all, get out of the market.  The market then proceeds to drop, interest rates are driven to new lows and the dollar loses its purchasing power.    So these investors have gained little, except for imagined safety.

If investors avoided a panic, the market would stabilize in a shorter period of time, interest rates and the dollar would not drop so low.

Market Trending Up|Buy, Buy, Buy

The economic indicators show the market on an upward tilt, if ever so slight.   So if you have not sold out, buy more.   Market crashes offer investors one positive, the perfect time to buy stock because stocks are on sale on account of all those investors who sold out

If you have a financial planner work with them to plan your strategy.   You will be very pleased at what sales you can pick up.