Economy and the Markets

So the big headlines on the news today is DOW DOWN 300. Why is it that we didn't see at the beginning of the week DOW UP 250 or 98 the next day or UP 45? You will if you watch CNBC but not the regular news. Why? Because bad things get better ratings. Think about the last time you saw a story on the news that made you want to smile. I know it really is hard. They are out there just few and far between. We are headed for some rough times but the people of America are very resilient and things have to slow down sometimes, or greed needs to be corrected it's the way it is. All the sensational headlines though? Why listen to them, it is just depressing. Your 401K will come back, take a look at it though, have you been too greedy and put everything into one sector because it was the best return in the last year? A lot of people do that, it doesn't work. Something that goes up 5 years straight at 30% won't do that forever! Just like home prices can't go up 20-30% every year without some type of correction. Don't get me wrong I am not saying that people are not in trouble, but if you took a loan for something that you knew you would not be able to afford in normal times you shouldn't have. Hopefully we will get some regulation on the mortgage brokers who mislead people as well talking about it only being about "the payment". When I built my new house a few years ago before interest rates started going back up my mortgage guy tried to get me to do some crazy stuff, they were at 40 year lows! Think they will go down from there? Probably not! This country is pretty resilient, we will be fine, a few may have to hurt but it will get better. Stay the course don't panic and for goodness sake stop listening to the news! Just kidding! I love information, but take it with a grain of salt, and remember the "experts" that predict things are WRONG 70% of the time. Set goals and stick to them do not base decisions on emotion of fear!
"Be fearful when others are greedy, and greedy when others are fearful!" Warren Buffet