October 3, 2002
Stop being wusses!
by mike <email@example.com>
Heh, that applies to a lot of stuff, but I'm directing it to those of us that are rapidly taking all the money we can out of the stock market. STOP.
Both the volume of the market and value of stocks are directly proportional to the amount of buying and selling going on. I'm no economist, but it doesn't take a business whiz to see that the more people wimp out and sell stock to keep what little money they have left, the worse the market gets.
I understand that in this new, uncharted age of corporate distrust and frustration, that it's difficult to believe anything a company tells you about its performance and/or expected earnings. I also have no problem comprehending that when your kids' college fund starts losing value, you want to cut your losses and save what little you can - maybe you'll still be able to send them to some nice Podunk Community College somewhere where they can major in cosmetology.
However, the fact remains that the stock market, by and large, isn't meant for short hold stocks. Most people, like those with IRAs, 401(k), 1809-T43's and 1-800-02-JENNY's out there are in for the long haul. That's how it's supposed to work. You might take some money out, and watch the market drop the next day, and turn and say, "See, Mike, you asshole, the market went down more! I was right!" Well, yes and no. The market went down because everyone else is doing the same thing you just did. If everyone would cool off and stop being so damned impulsive all the time, maybe we would see things stabilize a bit; maybe even rally!
There should be a mandatory waiting period for stocks. Kind of like handguns, just not as long. When you call your broker (who might have a Series 7 license, or he might not) to sell a stock because it's gone into a downturn, he should have to tell you to shut up and wait at least 6 hours (unless there's evidence of corporate misbehavior) so you can cool off and make sure you really want to do that. There needs to be more safeguards implemented into the system - hell, you can't even trust the brokers themselves these days! *cough cough* Martha Stewart *cough cough*
"...and today we'll be making a beautifully festive fruitcake in anticipation of autumn and the coming holidays. I made this one with nuts, berries and a splash of insider trading."
Published: October 3, 2002