Market Turmoil Creates Opportunity for Wealth

Stock markets got you down? I often struggle with feelings of failure when the markets head down significantly. I feel like I should have moved more money to cash before the markets started selling off or I should have held off on that investment a little longer till prices were even more attractive. It can be incredibly frustrating for me.

With the negative performance of the stock market comes good news in the grand scheme of things. When there is panic or news that is just so negative (as it has been for the last week) that perspective is being lost then its time to invest. This is how wealth is created -- everything that was a good investment before becomes a better investment now.

I find in times like these that Warren Buffet's wisdom is quite appropriate.

Related in Stocks:

Investment Performance March 2012 (+2.35%) (Apr 18, 2012) This is an ongoing monthly update on how our equity investments are performing. Please see this background on the investment tool I developed and how I am using it to track our performance against a benchmark to measure our progress...

Investment Performance February 2012 (+4.68%) (Mar 21, 2012) This is an ongoing monthly update on how our equity investments are performing. Please see this background on the investment tool I developed and how I am using it to track our performance against a benchmark to measure our progress...

How Well Has Our Investment Portfolio Performed? (Mar 02, 2012) I've now been closely tracking our investment portfolio on a monthly basis for over 3 years! Its been a lot of work and valuable for me personally as I can see the bigger picture each month. One realization that has...

Comments (3)

A lot of big money managers make a killing by buying on the way down - nothing wrong with that scaled approach because your basis will be much lower when those same stocks rebound.

Posted by Frugal Dad | January 24, 2008 8:34 AM

Just a few more quotes to add to Buffets'.

"Buy on Fear and Sell on Greed"

"The best time to buy is when there's blood in the streets"

Cheers,
MCM
http://middleclassmillionaire.blogspot.com/

Posted by Middle Class Millionaire | January 24, 2008 6:01 PM

While it is understandable that a down market can lead to some frustration, it's not necessary to feel like a failure... there is never any real insurance against the ups and downs - they are part of the game! Over the long haul, you are better off for having investments in the first place, so it will all work out in the end.
Jerry
www.leads4insurance.com

Posted by Jerry | January 25, 2008 9:47 AM