I wake up every morning and ritually do a few things. I get a cup of coffee, I check my e-mail and I bring my friend’s daughter to the bus and see her off as she bounces into a seat on the big yellow cheese. Once I’ve completed those tasks I head home and check to see what the stock market is up to. In recent days it has been far more eventful than I have ever seen it, but eventful is not always good in the stock market and the most recent news of plunging points does not bode well for the majority of investors.
Monday brought record breaking drops. After all was said and done the market fell 777 points. Yahoo reports that 3,038 stocks fell and just 162 rose. The reaction and ensuing panic took place mere seconds after a $700 billion dollar bailout plan failed to get the go ahead in the House. They market declined 500 points just minutes after the vote took place and a rapid panic swept the market.
While traders left the market pale and disturbed by the uncertainty of the financial market investors around the country scrambled to figure out what the next move could be as the United States looks like it is headed for an all out crash that could debilitate the nation as a whole.
After I checked into the situation on my own investing, a grim realization that things were not going to look rosy for awhile, I thought back to the days I hopped on the yellow bus and headed off to school, oblivious to what was going on around me. They say ignorance is bliss, and today I believe this sentiment to be nothing but pure, unadulterated fact.
Knowing what happened on the market leaves investors with a decision between bad and worse. Investors can consider selling off their stocks at some of the lowest prices of all time, or they can wait it out and hope things get back on track. Well neither is really an ideal solution for the situation.
Investors can risk losing right this second or potentially risk losing things later on, if the market does not rebound as so many hope it will. Some high-risk investors are surely wallowing in the situation, thinking about getting in while the getting is good and grabbing stocks as they plummet to the ground. That is an option, for those with nerves of steel, but for me I’m thinking perhaps the Carrie Bradshaw way of thinking isn’t so bad. Sarah Jessica Parker’s character on Sex and the City once said: “I like my money were I can see it, in my closet.”
At this point it seems as though money is far safer stuffed under a mattress or spent on things one truly loves than in the stock market.