Fool Blog: Another Day, Another 7.87%

By LouAnn DiCosmo and Brian Richards
October 15, 2008 | Comments (10)

Recs

9

Disney Buys Marvel!

...And David Gardner called it. He's up 1,334%! See what David's recommending that you buy NEXT!

Click here now to find out!

Yes, the Dow dropped 7.87% today. The Nasdaq tanked 8.47%. And the S&P 500, down 9.03%, had its worst day since Black Monday. Monday's gains? Virtually gone.

Economic fears were renewed today by more concerns about the credit markets, the Fed's ugly Beige Book news, and by disappointing retail sales. Some of the usual suspects in the financial sector dropped -- Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), and Citigroup (NYSE: C), for instance, each lost more than 10% today.

But the net was cast wider yet: Concerns about energy demand dinged ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) 14% and 13%, respectively, while consumer-spending concerns weighed on Jones Apparel (NYSE: JNY) and Macy's (NYSE: M).

Fools, we know it's tough to be patient and remember temperament at times like these. It's easy to get caught up in the whipsawing up-and-down volatility, the likes of which many of us have never seen.

As individual investors, we feel the same pain you do, watching the market day in and day out. We've lost money, just like you have. We've seen our 401(k)s shrink to mere ghosts of their former selves. We get it. It's a rough time out there to be an investor -- working hard to choose quality companies, investing in them for the long haul, and hoping to see that good work pay off one day with retirement, or your child's Ivy League education, or that second home on a hideaway beach somewhere.

But please, remain calm. Remember the long-term philosophy we've embraced together here at The Motley Fool over our 15-year history. Think about the incredible opportunities this market mayhem is presenting us with. There are companies trading at such cheap levels here that we'll be kicking ourselves years from now if we turn away from the market at this time.

Take a deep breath, don't push that "sell" button, and stay tuned to Fool.com for ongoing analysis and commentary.

Further Foolish insight:

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Online managing editor LouAnn DiCosmo and advocacy editor Brian Richards do not own shares of any company mentioned here. Bank of America is a Motley Fool Income Investor pick. The Fool's disclosure policy prefers Mary-Kate over Ashley.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 15, 2008, at 6:24 PM, CrankyTexan wrote:

    JDSalinger12, since you seem to think that we have not reached bottom yet, can I borrow your crystal ball so I can see the future like you do?

  • Report this Comment On October 15, 2008, at 11:01 PM, EPS100Momentum wrote:

    "Take a deep breath, don't push that "sell" button"

    Are u joking? By Not selling and continue taking deep losses is the worst way to invest.

    Preserve what u have left by going to Cash and then at least u have a higher base to start investing again once the downturn finally ends sometime in mid 2009.

  • Report this Comment On October 16, 2008, at 4:19 AM, Fabin81 wrote:

    lol, yup keep your money in this market which goes down about 7% daily for two weeks, goes up 11% one day and then continues its downward trend... I say wait till you see an upward trend, not too much and then make a killing!

  • Report this Comment On October 16, 2008, at 11:05 AM, 181736065 wrote:

    STOP THIS INSANITY!

    "Buy and Hold" sucks in this environment. Look at the Fool scoreboard. Only ONE is not underwater over the "long haul".

    (Plus, I wonder what the "Million Dollar Portfolios" are worth after less than a year.)

    Hey guys, can ya update us on those numbers?

    The Fool has GREAT research and integrity. And they communicate clearly and interestingly. Their products are excellent. Their attitude of open discussion is commendable.

    But their "buy and hold" investment continues to be a disaster in this environment.

    I wonder how many retirements and college funds they unintentionally continue to destroy with a "keep buying and holding" attitude in a market that's entering what may be a deep and protracted world-wide recession.

  • Report this Comment On October 16, 2008, at 11:10 AM, CrankyTexan wrote:

    EPS100, since you seem to think that we have not reached bottom yet, can I borrow your crystal ball so I can see the future like you do?

  • Report this Comment On October 16, 2008, at 11:12 AM, CrankyTexan wrote:

    fe3lixallen, buy to hold is not measured by one year like you are measuring it. It is measured in decades. Duh.

  • Report this Comment On October 16, 2008, at 11:14 AM, 181736065 wrote:

    Cranky,

    I don't appreciate the "Duh" comment.

    Please try to express your frustration without the uncivilness.

  • Report this Comment On October 16, 2008, at 3:31 PM, CrankyTexan wrote:

    fe3lixallen, try to express your pessimism without being misleading. Buy to hold is not about months. It's about decades. But you already knew that, didn't you?

  • Report this Comment On October 16, 2008, at 3:35 PM, CrankyTexan wrote:

    The Motley Fool has stated many times that their investment style requires years of patience. If you look at their stock picks from 5 years ago, most of them have crushed the market. If you don't have that kind of patience, you should be invested in stocks in the first place.

  • Report this Comment On October 16, 2008, at 3:35 PM, CrankyTexan wrote:

    (you should NOT be invested in stocks in the first place.)

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 754545, ~/Articles/ArticleHandler.aspx, 11/9/2009 2:32:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Which Companies Can Buy It Like Buffett?

By The Motley Fool

Which Companies Can Buy It Like Buffett?

Related Tickers

11/6/2009 4:00 PM
BAC $15.05 Down -0.08 -0.53%
Bank of America Co… CAPS Rating: ***
JNY $17.86 Down -0.05 -0.28%
Jones Apparel Grou… CAPS Rating: **
MS $32.60 Up +0.18 +0.56%
Morgan Stanley CAPS Rating: **
M $19.18 Up +1.16 +6.44%
Macy's, Inc. CAPS Rating: *
CVX $77.53 Up +0.29 +0.38%
Chevron Corp CAPS Rating: ****
XOM $72.58 Up +0.08 +0.11%
ExxonMobil Corp CAPS Rating: ****
C $4.06 Down +0.00 +0.00%
Citigroup, Inc. CAPS Rating: **

Community: Investing Wiki

Term Of The Hour

Speculation: Speculation is a risky bet that could have a large payoff if it works out. The speculative investor attempts to profit from the price fluctuations of real estate, commodities, stocks, or any other type of investment that stands to churn out a profit.

Want to learn more or edit this definition?
Click here to read more!