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An Economy Needlessly Spiraling Out of Control

An Economy Needlessly Spiraling Out of Control

We 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.) 

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.

Peter Lyle DeHaan, PhD, is an author, blogger, and publisher with over 30 years of writing and publishing experience. Check out his book The Successful Author for insider tips and insights.

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