Best Business Commentary
Investors in mutual funds are much better informed than they were on Black Monday, says Chuck Jaffe in MarketWatch. Forget all these Black Monday comparisons, says Gene Marcial in BusinessWeek.com.
chooled by Black Monday
Investors in mutual funds are much better informed than they were on Black Monday, says Chuck Jaffe in MarketWatch. Back in 1987, most “common man” investors “only knew what some salesperson had told them about the funds they owned.” Luckily, when the market lost a third of its value, “investors lost a lot of their naiveté.” Now if we hit “bad times,” investors will “intuitively” understand: if the company that manages your mutual fund goes under, it won’t take your money with it; diversify your asset types, not just funds, but don’t expect to “avoid short-term pain”; and not even a “record bad day” can spoil “a lifetime of sound investing.”
Forget all these Black Monday comparisons, says Gene Marcial in BusinessWeek.com. “The Oct. 19, 2007 sell-off should be seen, plainly, as an investor’s bargain-basement opportunity.” Aside from $90-a-barrel oil, nothing that happened Friday should “have shocked anybody.” Investors sold on “a panicky, silly notion” that the 1987 crash was repeating itself. Now, the smart “bargain hunter” will snap up banks hit by the subprime and credit crises. It’s a near certainty “that things will get better before they get worse,” and those stocks will soar at the first excuse. And if they fall more, “consider yourself lucky” and buy more shares.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
MOST POPULAR ON THE WEEK
- The 11 worst fast food restaurants in America
- I hate Ayn Rand — but here's why my fellow conservatives love her
- Why Peter Capaldi has a bigger challenge than any Doctor Who in history
- Dean Koontz's 5 favorite books
- 7 things the world's happiest people do every day
- The weird obsession that's ruining the GOP
- Here's the schedule very successful people follow every day
- 7 grammar rules you really should pay attention to
- Why are so many parents being arrested?
- 10 things you need to know today: July 23, 2014
Subscribe to the Week