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A Bad Day In The Stock Market

A bad day in the stock market can turn out to be a great day the next. Then again there’s days like today that can show you that there’s more of these days to come. Either way, you need to be prepared for both.
A great deal of bad news came out today that confirms that this slowdown as well as the financial crisis will continue for quite a few months. The news of the new homes sales showed that it’s dropped over 14% in November and compared to last year, it fell 44%. This news hit the construction sector for about 6%-8%.
To add insult to injury, Initial jobless claims revealed a jump in claims to 588,000. I’m sure that we’ll see more numbers like that for the better part of 2009. In this week alone, we’ve heard of other major companies announcing that they too we be having lay-off in the coming months.
To top it all off, we have this stimulus plan being passed around Washington that will do a lot for America, but not in the way of actually stimulating the economy. I spoke a few weeks back about the expected stimulus bill could mean great things for the alternative energy sector, amongst other things. Well it seems that this bill will not really do anything for the economy for roughly eighteen months. In the mean time, Washington will be going on a spending spree.
With the way it’s all going in this country, I’ve pulled out nearly 90% of my capitol out of individual stocks and into more sound investments. I’m not even worried that I won’t make any really good gains because of me sitting on the sidelines, instead, I’ll be able to sleep at night better knowing that I won’t be experiencing any big losses. I’ll get back into the market later in the year.
That doesn’t mean that I’m not continuing to do my research. I still watch and listen to the TV and radio to keep in touch with the latest news. It would be foolish for me to fall out of touch with the economy, but that doesn’t mean that I have to trade stocks. When I started to be interested in the stock market, I would listen to the news to understand the markets, long before I had money to invest. When I finally had the capitol to invest, I was more prepared.
If you’re one of the many who’ve taken themselves out of trading because of the condition of the economy, make sure you keep up to date with everything for when you decide to jump back in.

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