The stock market dropped 717 points today after the House failed to pass the Bailout by a vote of 228 No to 205 Yes. Massive sell offs of stocks are causing turmoil in the market. Is it a time to sell or a time to hang tough and follow classic buy and hold strategies? Only time will tell.
Warren Buffett just invested 5 billion dollars into Goldman Sachs so he is still optimistic. His brilliance in the market is well documented. So he is the bright light in a very dark time for investors and Wall Street investment banking houses.
Historically October is the toughest month for the stock market. It will be interesting to see what events October 2008 brings to the stock market. With the election looming our country is chaotic in so many ways. The turmoil on Wall Street is just agitating the nation further.
To learn more about the stock market the following books may be helpful:
“The Great Crash: 1929” by John Kenneth Galbraith
“Why Stock Markets Crash” by Didier Sornette
“Women and Money” and “Nine Steps to Financial Freedom” by Suze Orman
“Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History is Still Coming” by RT Kiyosaki and SL Lechter
“A Random Walk Down Wall Street” by Burton Malkiel
Some websites that provide useful information about investing include: www.MarketWatch.com, www.Fool.com, and www.TheStreet.com