Lately, the stock market has been worse than a drunken night in Atlantic City. First the Dow Jones was up past 14,000; a mark so high that even non-English speaking taxi drivers were saying, “My mutual fund so good.” But yesterday, the market took its biggest dive this year, dropping 310 points.
Why the drama? Unbeknownst to the average metro-ite, who has seen the erection of condos on every corner, the rest of this country has seen housing prices tank and a vast slowdown in construction. If this continues, people won’t be able to tap into their homes’ equity to purchase other items, causing industries, like retail sales, to suffer. What will people do if they can’t buy the latest QVC special?
But all is not lost, according to Neil Massa, of New York based-Goldman Sachs, “The best time to buy stocks is when you’re least comfortable buying stocks.” This afternoon might be a good time to heed his advice, as the Dow has dropped another 129-odd points. Go ahead, shoot for snake eyes.
Photo courtesy of Kriston Lewis on Flickr