Ten Reasons to Worry About the Stock Market
Ouch. It was the biggest drop in the Dow Jones Industrial Average since August. Markets tumbled yesterday, while fears surged—about jobs, Spain and Saudi Arabia.
But what does this mean for you, the investor?
Was this just a one-day wonder, a buying opportunity, a small but passing cloud on an otherwise sunny horizon? Or was it something more ominous?
The market’s next move is always a mystery. It could go up 500 points next week or down 500 points, or stay in range. You shouldn’t let one day’s price movement govern your financial decisions. It’s never sensible to panic. And sure, this could be just a passing storm.
Yet there are reasons to be concerned about what just happened. Maybe I’m being too nervous here. I hope so. When the market sells off, I usually like to find reasons to buy stocks more cheaply. But here are 10 reasons why this 228-point slump in the Dow makes me sit up and take notice.