How Much Lower?

For the first time in 11 years, the Dow Jones has fallen below a benchmark level of 7000. There is no bottoming action and despite all the efforts of the government, the outlook is not much clearer. At these prices, it's hard to take your losses and sell because a bounce is inevitable. On the other hand, it's also tough to watch your investments deteriorate slowly. Take today's levels into historical perspective. The Dow was at the same levels as it is now in 1995. Subtract inflation over that time period and you have ridiculously cheap stocks. Warren Buffet today said that our best days are ahead. Have a mindset for the long-term and stay out of companies that are vulnerable to the credit situation. Invest in sure things and don't make any speculations whatsoever. Three years from now, you will look into hindsight and be glad that you did the opposite of what everyone else is doing: buying into panic.