An Economy Needlessly Spiraling Out of Control

An Economy Needlessly Spiraling Out of ControlWe are in the midst of a wide-scale panic in the stock markets with prices plummeting daily. At this point, there is no legitimate cause for the mass selling; people are basically reacting out of fear without thinking clearly or logically. (And it doesn’t help when media folks with a huge following are telling everyone to sell.) Take a long-term view; don't seek short-term results. Click To Tweet

Two key points of investing are as true now as ever:

  1. Take a long-term view; don’t seek short-term results.
  2. Buy low and sell high. Right now is the time to buy, because there are great deals out there. Instead, too many people are panic selling; they bought high and are selling low—a guaranteed way to lose money.

Even if your portfolio is out of balance or you want to take a less-risky position, now is not the time to make adjustments, because you will certainly take a loss. Ride it out and wait for things to rebound, as they certainly will.

When Charlie Rose had an exclusive interview with Warren Buffett. His comments are astute and insightful; everyone should take a listen and carefully consider what he has to say.

Wordsmith Peter DeHaan is a magazine publisher by day and a writer by night.

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