A local financial guru speaks to our Beaches Realtor group a few times each year, and his perspective, whether brigh and shiny, or not so much, is always good intel, in my opinion.
Yesterday, he sent an email to his subscribers that details the recent market decline and what to make of it. His rationale was that the stock market was due for a breather, however, he wanted us to be aware the by a "breather" he wasn't predicting we would see a "crash, or a double dip".
The analogy he made was this: if I tell my 10 year old son not to play with a knife, he would explain the knife would cut him, they would end up in the ER, and the son would get stiches. Realistically, his son's chances of getting cut would be slim, but that would not make the piont. Going to the hospital and getting stiches makes his son more aware of the danger.
To make their point, the media exaggerates in the same way. Interesting, isnt' it?
The full video he sent is here: http://www.ftportfolios.com/Commentary/EconomicResearch/2011/6/1/just-another-soft-patch
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