Stocks On Sale!
Tough week on Wall Street, eh? Bloomberg reports it's the end of the worst week since January 2003. Tuesday's sell off was the single biggest declining day since 9/11. Time to panic? Well, if you're a long-term investor (which, unless you're a day-trader, you really are), then there's only one way to really look at the recent precipitous drop in the major indexes: There's a sale on stocks! Been eyeing AAPL stock while you wait for the iPhone? Pick some up in the mid-80s today, a full 5 bucks off last Monday's prices. Like GOOG but put off by its recent 500 price tag? How 'bout now, at 438? Starting a new retirement account like I am? Now's a great time to start... Everything's on sale!
My brother Todd is a stock analyst, and a very good one at that, providing research and counsel to money managers to some of the best mutual funds and hedge funds around. Following this week's trainwreck, Todd just raised his projections for the major indexes over the next year. Essentially, his take is that this volatility is a good thing, because it's creating opportunities. If there's something I want to buy and the price comes down, whether it's a plasma screen HDTV or a share of stock, sure, I call that an opportunity. Check out Todd's blog and his Google video here.