"Too weird for words"...that's our financial world right now.
As a result, Chicken Little is running wild! And he is providing fuel for every single media outlet in this country. "The sky is falling, the sky is falling..." Well, unless you're willing to live in a bomb shelter that your grandparents or great grandparents built and eat canned goods for the next 12-18 months, you would do well to be calm in the face of this storm that we're in today. Because let's face it, the storm's hit and the fan is blowing at high speed.
So let's talk reality about the financial marketplace. What are some fundamental truths that most people aren't aware of today? Consider that historical studies show that the Dow Jones typically experiences a sharp and sudden drop every 4.3 years. The last one we had in the US was in 2001, so we are 2.7 years overdue. The S&P 500 historically experiences a sudden drop of similar magnitude as we're seeing every 10 years. We haven't had one since the crash of 1987, making us 10 years overdue. What we are experiencing, while painful and frustrating, is not unexpected for those who understand the marketplace. What IS unexpected is the fact that it this occurrence coincides with all of the backlash of the real estate failures we are seeing.
Continue Reading and take the poll.
PS. We're especially jazzed when you continue reading and comment directly on our blog!
Also, the thought of Obama as President will make people worry about capital gains taxes doubling so they figure why not take our money out of the market now.