Beware of Falling Stocks

A three ring circus and an approval for 700 billion dollars and today the DOW Jones falls below 10,000 points for the first time in 5 years. Do I still think we are over reacting? Yes. First it rebounded over 10,000 points.

Lets look at the chart from before but with more current data. In January of 2002 the stocks also fell well below the 10,000 mark after being well over. Between January and April the market seemed to be on a course for serious depression or recession. However, it pulled out. The recent lemming reaction of the US people to pull their money out of the market is actually leading the American people on a straight course for the cliffs ahead.

Irresponsible individuals including NBC's Jim Cramer appear to refuse to be satisfied until the entire market crashes. It is irresponsible to stand up as an investment individual and tell everyone to take their money out of the markets if they will need it in the next five years because there is no way it will recover. The 2002 market slump lasted almost a year before the market began to climb again. When it finally stopped, the US had hit the highest point ever in the history of the market.

Self-fulfilling prophets and irresponsible individuals need a straight jacket until this is over. The stock market never was meant for individuals with weak constitutions. At a time when so much seems uncertain, there is one thing is stable; it is better to be in the American markets right now then in the other markets in the world. The US dollar hit a 13 month high on the markets. While people here at home at freaking out, the world is saying, the US has a better chance of making it through this well then anybody else.