Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Investing in Stocks During Scary Times

Stock-Markets / Stocks Bear Market Nov 19, 2008 - 11:20 AM GMT

By: Money_and_Markets


Best Financial Markets Analysis ArticleNilus Mattive writes: Every time it looks like a real stock market rally is about to happen, the indexes end up right back down where they started (or lower).

Panic and doomsday scenarios are all over the newspapers and TV talk shows.

And when you look at a longer-term chart of U.S. stocks, it's clear that we've already had a “lost decade” of zero returns.

So the big question on everyone's mind is whether another ten years of stock weakness is yet ahead. I'm getting calls and e-mails from plenty of friends and family … including people who never pay attention to the economy or their retirement portfolios.

Collectively, they wonder whether this is the time to just sell everything. Whether this is “the big one.” Whether the bursting credit bubble spells the end for the United States as we know it.

I don't try to sugarcoat my responses. In fact, I start off by confirming what they already know — namely, that things look rather grim for both stocks and the global economy.

I go on to say that we very well could see another decade of poor stock returns. Our nation has to pay the piper for many years of easy money and unbridled consumption.

But I also tell them that this is precisely the time to be optimistic. History has demonstrated — time and again — that the best time to buy stocks is when everyone else is selling.

A few weeks ago, I told you what Warren Buffett says — that we should be greedy when others are fearful. And right after I mentioned that quote, he reiterated it during an Op-Ed piece for The New York Times . (In case you missed it, the upshot was that Warren is moving his personal account from Treasuries to U.S. stocks.)

Still, I Recognize That It's Hard to Act When Fear Is the Dominant Emotion

All those great Wall Street aphorisms are so easy to say, aren't they? “Buy low, sell high.” Sure, piece of cake. Until you try doing it, of course.

My most vivid memory of being scared into inaction came seven years ago.

It was September 17, 2001, and I was returning to my downtown Manhattan office for the first opening bell of the New York Stock Exchange since the September 11 attacks.

Just six days earlier, I fled from the basement of the World Trade Center after the first plane struck. I heard the second plane hit as I hurried past the corner of Broad and Wall. I stood in awe as the first tower collapsed right before my eyes.

Now, here I was back in the heart of the financial district, walking past shards of a building … showing my driver's license to an MP holding a machine gun … and sitting in front of my computer wearing a dust mask.

As expected, the market opened sharply lower that day. And throughout the ensuing meltdown, I kept getting ready to allocate a big amount of money to stocks. I absolutely knew in my heart it was the perfect time to buy with both fists. But I couldn't do it.

In the back of my mind was a singular thought, What if last week was just the opening salvo?

Today, amid this financial crisis, the threats are different, but the fears are eerily similar. We wonder if more pain is headed our way.

It's enough to induce “ostrich syndrome,” where all you want to do is bury your head in the sand … just get away from it all … move everything into cash … never think about stocks again.

If your head is buried in the sand, you can't see the good stuff that's ahead, only darkness.
If your head is buried in the sand, you can't see the good stuff that's ahead, only darkness.

But when you act like that, you can't see down the line. All you see is darkness.

I can't help looking at this current maelstrom as one last great opportunity to buy the S&P 500 well under 1,000, to make up for that day on September 17 when I watched the ticker tape and sat there on my hands.

Sure, there's probably plenty of time to take advantage of these prices. They may even get more attractive before all is said and done. But one thing that I learned from experience is that you can't let fear freeze you in your tracks. You've got to keep looking ahead and planning for better days.

Never forget these two basic facts:

First, many of the market's major advances have come swiftly, and without warning. And they almost always anticipate economic recovery.

Second, an all-cash portfolio will almost certainly underperform over any substantial length of time.

To be clear, I do not think now is the time to go “all in” on stocks or take unnecessary risks. The volatility is still a bit too high.

But I do think you should stick to your investment plan … continue contributing to your retirement accounts … and diversify into some core income stocks if you haven't already done so.

Best wishes,


P.S. I want to make sure you're totally prepared for what's coming in 2009 and beyond. That's why I want to send you a special Gala Annual Forecast Issue of Dividend Superstars . Click here for all the details.

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit .

Money and Markets Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules