Mitch
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Mitch in $ Financial Freedom Chasers,

What did I tell you guys about PANICKING last week when the stock market "crashed"?

Oh, how we all OVERREACT whenever there's a plunge. The market is back up 2.43% in ONE day at the time of this writing.

Those of you who have been following my blogs and financial news probably heard about the 5% dip in stock prices this week. Well, guess what? The S&P 500 is bullish again and I have a feeling it will keep climbing higher. This is why I always say NEVER sell when there's an extreme drop because most of the time, the prices are undervalued.

If you do what everyone else is doing, you're not going to win the game. That's why you shouldn't sell when everyone else is selling. This may be common investing principle to many of you but I feel it necessary to reiterate it here: When the world is greedy, it's time to be careful. When the world is panicking, you swoop in and take advantage of the bear market.

At the time of this writing, the S&P has recovered somewhat. It wasn't back at the peak (by Vanguard's values, of roughly 2100 before tanked). It went down to mid 1800's and is now very closely approaching 2000. My prediction is that it will stabilize around 2050 for a while, unless some other current news creates more volatility. But from the looks of it, it will most likely stabilize. Who saw that coming this Monday? Certainly not all those "expert advisers" who told everyone to sell off their assets.

In other news, those of you who are investing for long term may find this reassuring to know that no, despite what your uncle may have told you, we are not facing another 2008 anytime soon.