Ben Dinsmore

What's an Investor to Do - Patience or Panic?

Indeed, these are difficult times to be invested in any sector of the stock market. Triple digit drops in the Dow day after day can make even the most optimistic investor second guess his position. As the days wear on and portfolios drop this inevitable question rears itself: Should I Get out of This Market?

No you shouldn’t! And here’s why. The market is more transparent now that it ever has been. That is, every conceivable scrap of information that would have any impact on the markets (with the exception of illegal insider trading) is already factored into market prices.

We already know that housing prices have lost value; we already know that energy prices are high. We know that the market went down because particular companies have declared a huge quarterly loss.

The problem is no one can predict how much more negative or positive information will come out on any given day. If they could then that information would already be available and factored in to the markets.

When we lose sight of the main reasons we invest in a particular security (good products, services, poised for growth, exc.) all we have left as investment guides are our emotions. I challenge that you won’t get back into the market at the right time! Unless of course your lucky!