Stock Market Update

Posted by in Blog, Resources

For investors, and reporters who cover the market, it has been a very stressful August. With the S&P Downgrade, a general lack of leadership and agreement in Washington, the multiple crisis in Europe (think Greece, Italy, etc.), and an above average crop of doom and gloom prognosticators, it is understandable that even the most hardy, intrepid, investor is reeling.  With the London riots, one begins to feel the “End of the World” may indeed be approaching.

Some declare buy and hold dead, Mark Cuban says “diversification is for idiots”, and a plethora of new alternatives to traditional investing seem to appear every day. Commercials telling you to stop even thinking about investing in the stock market are featured in almost every programming break and on business stations! Prophets of doom tout the accuracy of their previous predictions with new and equally dramatic new predictions. The Marist Poll indicates 68% of American’s believe the “worst is yet to come” and consumer confidence hasn’t been this low since 1980. I don’t know about you, but my inbox is packed with offers to help me out of this predicament. My favorite is “Critical Warning #6”, his first five evidently giving him credibility for his new prediction that will hit most people like a “brick wall”.

But do the facts match the reporting and the predictions? In a word, no!

Here is a mid-month report of the total returns, including dividends, of the market indices tracked by the Whole Investor Network.

Index 081211

You have a choice. You may choose the long-term strategic approach with little or no stress or you may choose any number of alternative short-term approaches loaded with drama and stress. The evidence clearly supports the former while those who wish to make money off of your fear, with the possible support of the pharmaceutical industry, encourage you to accept False Evidence Appearing Real.
The choice is yours….