Today was certainly exciting. I go to lunch and see AG Edwards, er, Wachovia's handy dandy Dow sign down around 11160. Then at lunch Julie's talking about the Merrill buyout. Then I check Yahoo Finance before dinner and the Dow's down 500 points. And oil's under $100.
At times like this it's good to take a second and remember, short term volatility does not affect your investment goals. Odds are, the vast majority of your wealth is tied up in your wages. If you're lucky enough that equities represent a large sum for you, congratulations, you're one of the winners in our economy!
And for those of us that are younger-ish, this is a huge opportunity. With most of our earnings ahead of us, the cheaper assets like stocks and real estate are in the present, the better long-term value they represent.
And PS older folks, we'd be happy to buy your assets from you at prices you find amenable. All you gotta do is pay us wages so we can afford them. At the end of the day, that's what this is all about. It's not a housing crash or a credit crunch that's the root problem. The root problem is your average worker doesn't make as much money as she should.
But just remember, no matter your age, don't bet your lunch money in the stock market. Even iconic companies fail.
Au revoir Lehman and Merrill.
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