STOCK MARKET

Financial markets have had a rough week so far. Certain indices have seen massive drops in the last few days, the DOW losing about 2,000 points in a week.

I’ve got a lot of money tied up in stocks, mutual funds, and bonds but I’m not ready to panic just yet. Compared to year ago, the DOW is still up about 3,000 points. If you invested in some diversified fund exactly one year ago, you’d still be in a position to be making money right now. Sure, there are some troubling signs and we don’t know where the drop will end. I do see this as a potential opportunity though. At the height of the last recession, I bought some index funds, not a whole lot, just $3,000 worth. The markets recovered and I more than doubled my money in less than eight years. I’ve thought a lot about that experience, wondering what if I had put in $10,000 instead, or even $50,000. It taught me to be ready to invest when the time is right.

When will we see the bottom of this latest drop?

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