Nervous investors who bailed out of stocks last Monday opened the door for buyers waiting to snap up bargains. It’s always been that way as markets react to bewilderingly sudden crises. Looking back, virtually all crises since World War II, including bombings, war and the Kennedy assassination, had an initial Wall Street sell-off followed by a solid recovery six months to a year later. Of course the past is no reliable guide to the future, but odds are that the markets will come back in a relatively short time – some experts look to next year for a strong rebound, pointing to the overall strength of the American economy.
If you believe (as we do) that the United States economy is a good bet, then stick with careful stock picks and stay turned to the business pages of your favorite newspaper and daily financial reports on radio and television. Above all, don’t panic when another crisis rolls around. Keeping emotions in check is always a sound plan for investing, no matter what.
