Panic and Sell? No Way!

 

"During a brutal summer stretch, the S&P crashes into bear-market territory amidst widespread investor panic [that a] double-dip recession is on the horizon."

If you thought that quote was summarizing today's market, it's not. That's the sentiment from last summer, and investors who jumped in at that time did quite well. With a record earnings season fueled by American companies seeing record profits abroad, don't let hysterics get the best of you.

Take Apple (Nasdaq: AAPL  ) , for example. The company saw China's sales rise a whopping sixfold last quarter. Intel (Nasdaq: INTC  ) said Brazil was on track to become the world's third-largest PC market next year. The S&P 500 is full of global companies, and the global economic story isn't as dreary as the headlines insist. Any investor who's overly fixated on the fear gripping the market today is risikng selling out at a time of great opportunity.

I stopped by the local Fox affiliate in Washington, D.C., to discuss the recent market sell-off. To watch my visit, where I discuss record corporate earnings and what investors should do next, simply click on the video below:

Dow Falls 512 in Steepest Decline Since 2008 Crisis: MyFoxDC.com

Eric Bleeker owns shares of no companies listed above. You can follow him on Twitter to see all of his technology and market commentary. The Motley Fool owns shares of Apple and Intel and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Intel and Apple, creating a diagonal call position in Intel, and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (14) | Recommend This Article (38)

Comments from our Foolish Readers

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  • Report this Comment On August 05, 2011, at 10:42 AM, pscholte wrote:

    As a contrarian wannabe, I find it instructive that almost NO ONE is seriously broaching the idea that this time may be different (other than Marc Faber and he is so gloomy that most people will not figure out when he IS right til too late. Looks to me like not even the dead cat is bouncing this time.

  • Report this Comment On August 05, 2011, at 10:46 AM, eddyrich wrote:

    I think the more people watch cnbc, the news, etc., the worse they will make out...

  • Report this Comment On August 05, 2011, at 10:53 AM, SkippyJohnJones wrote:

    Great quote! Thanks for digging it up to add a little color to the news of the day.

  • Report this Comment On August 05, 2011, at 11:35 AM, wrenchbender57 wrote:

    akacroke, I don't understand how one company's information (ResMed) has much to do with this topic? Yes, they seem to be doing great. But what about all the other companies? Some stats on the overall profit of many companies would seem to be a better source of information, wouldn't it? Do you own shares of ResMed?

  • Report this Comment On August 05, 2011, at 11:35 AM, wrenchbender57 wrote:

    Wish I had more cash to buy stocks that are on sale now.

  • Report this Comment On August 05, 2011, at 11:45 AM, pscholte wrote:

    Beware of sales that are followed by fire sales.

  • Report this Comment On August 05, 2011, at 12:19 PM, profbissell wrote:

    What are some "buy" recommendations based on the past weeks trends?

  • Report this Comment On August 05, 2011, at 12:22 PM, 0gers1 wrote:

    DUDE! Look at the camera.

  • Report this Comment On August 05, 2011, at 12:40 PM, TheoryMeltFool wrote:

    good interview and good advice. i've kept a rainyday account for anytime the market loses 2% or more. needless to say i almost depleted all of it this week.

  • Report this Comment On August 05, 2011, at 2:31 PM, pscholte wrote:

    I become more and more convinced that the market really does not make sense and/or market analysis makes no sense. I read this morning that the 500 point sell-off was the result of the market catching up to the global reality. As I write this it has recovered from being down again today to being up 90 points. So what changed in that "global reality?" I think market analysis is overrated.

  • Report this Comment On August 05, 2011, at 2:34 PM, mtf00l wrote:

    Place your bet's, place your bet's...no more bet's...

  • Report this Comment On August 05, 2011, at 3:49 PM, onegooddoc wrote:

    If you can keep your head when all about you

    Are losing theirs and blaming it on you;

    If you can trust yourself when all men doubt you,

    But make allowance for their doubting too:

    If you can wait and not be tired by waiting,

    Or, being lied about, don't deal in lies,

    Or being hated don't give way to hating,

    And yet don't look too good, nor talk too wise;...

    ...Yours is the Earth and everything that's in it.

    this is a very abbreviated version of kipling's great poem, "If"

    it is worth reading the entire poem.. sage advise for the idiots who roil the markets on a daily basis and for no good reason. the US is the greatest nation on earth.. we just need to remember who and what we are, and act accordingly, with reason, sense and maturity, not like the right wing clowns who mucked around with the debt ceiling and cast uncertainty on our country.

  • Report this Comment On August 05, 2011, at 6:12 PM, BUDDHAPRINCESS wrote:

    Well, this has been a very turbulent week.

    9 sessions in the row markets are down, silver, oil and just about everything else in the market.

    Sell or no sell, big question. In the interview this summer is being compared to last summer that what we are experiencing is no different, however last sumer we were still in QE2, which has now ended. We waited weeks to see what will happen with raising the debt ceiling, which was a complete theatre and waste of time as we all knew what it will be in the end. However now it looks like we may be entering the deflation period and it will be months before QE3 will be announced. Perhaps this is the Feds preparing the soil for it. But in meantime, your silver and your gold investments may just be evaporating. I must agree that gold is doing very well as it is used as safe heaven for most investors, but we have seen so much manipulation of the silver market, that yes many are running scared.

  • Report this Comment On August 05, 2011, at 8:09 PM, Morganbeach wrote:

    i called my broker yesterday to move some money ... felt like a TV commerical was out golfing... today i parked my IRA into cash and moved my stocks to cash.

    Took my etrade account and shorten several stocks based on trends in my trend for life system.

    Bought two lot in cash from bank in community where owners are trying to sell for 20k more.

    Sometimes taking a breath allows you to regroup ... plan on getting back in the market slow with right picks.

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