Stock market fears

Does the drop in the stock market, all the volatility, scare you?

Here are some things to think about: Yes, we could be in a large wave down (if you follow Elliot Wave analysis), the wave hypothetically terminating at about 50% of current levels before we have a wave up; Or, we could be in a double dip recession, and it would be worse than the great depression because at that time, we were a creditor nation; or ... we could be at the brink of war. Harsh economic times often lead to war, revolution, and the like.

So if you want to be depressed, you can find plenty of reasons! I choose to look at the other side of the coin, however.

People who are pulling their money out of the markets need to put it somewhere else to get decent returns. Housing prices are pretty low (though there is some argument for them going lower). Inflation is starting to be part of the picture, so it means investors must seek higher returns to stay even, and the housing market looks pretty good for returns at the moment.

Many stocks are cheap now; maybe not at their lows, but low enough in many cases that they are a better bet than letting money sit in a bank! P&G, Exxon Mobil, and a host of other companies are paying upwards of 3% as a dividend at the moment, and the prices have been hammered. One of my favorite stocks has been around 13 and is 10 right now, and pays a much higher dividend than that! So there are bargains everywhere. 

It is a little like so many people I meet who won't invest in a down market. I love down markets! opportunity is everywhere! Change your mindset, change your strategy, make some money! Have fun! Sure, there are problems, and we will get through them. The world will not end, there will always be real estate to buy and sell. So get out there, get some education, and do some deals!