User 101449

Is the Media Partially Responsible For the Panic?

There are definitely a lot of problems in the economy; in fact, it appears to be a perfect storm. However, the press and CNBC sensationalize all of the negatives and constantly have guests who predict Doomsday. The market moves violently based on their opinions and all of the negative reporting. The worst thing anyone can do at a time like this is cash out of their 401K and realize the paper losses. Markets are cyclical and always come back over time (although it may take a while in this market). The best advice is Warren Buffet's: Buy when people are scared and sell when they are greedy.