Since January 2008, as the Dow plunged 23%. This is what market crash is all about. It’s a redistribution of wealth -- pure and simple. Billions of dollars flowing out of Wall Street’s coffers and into the hands of people who know how to parlay the big meltdown into big easy cash payments.
People who continue to follow Wall Street’s tired, old “buy and hold” investment creed are going to get wiped out. And beware! When a slick broker tells you the market crash is creating an exceptional “buying opportunity”… be very careful. I can’t tell you what will happen with Dow Jones in the coming months and years, but I can tell you this: The old way of investing is not going to work anymore.
If you are counting on stocks and mutual funds to build wealth, it will take years before we see a sustained positive rally. Oh sure, there will be upward surges. But for every step up the stock market takes it will take two steps down. This could go on for years!
The following chart shows Dow Jones Industrial Average moves from 2000 up to today, October 2008.
We are in the midst of a financial Armageddon; the likes of which haven’t hit the United States since 1929. Millionaires will become penniless. Financial empires will be reduced to rubble.
Is it a good time to invest? Buy low sell high, the traditional investment strategy we’ve all learned.
But what’s going t happen to my investments? You ask. Am I going to lose my investments? What’s going to happen to my 401K plan in this market?
But there is NO REASON for you to go down with the ship... Nor is there any sane reason whatsoever for you to stick all your money in bank CDs and get eaten alive by inflation.
Let’s face it: Wall Street is in a heap of trouble. And it’s not just the big name firms like Lehman Brothers and Merrill Lynch. All of Wall Street is on the brink of being wiped out. Hedge funds, mutual funds, institutional investment houses… They are all scrambling to keep their heads above water.
Make no mistake: The Wall Street hotshots are shaking in their boots. These guys are terrified. Their fear presents us with a remarkable opportunity. You see, nothing spawns fear like falling stocks. And when stocks fall for a few days... watch out!
Keep in mind; these big Wall Street firms are holding billions of dollars in stocks. Some of their positions are massive. When things go south, they panic. And their panic drives stocks into the ground.
See Also: Dow Jones, Dow, Dow Jones Industrial Average
Dow Jones Chart credit investmentscore.com
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