In the soundbite world that we live in most of us are all too aware that the Dow Jones Industrial Average, an extremely narrow look at the U.S. and global economy, dropped about 275 points on Friday.
Watching the majority of the business shows and listening to the investment "experts" that they parade on, you would be under the impression that if you have a "long-term investment horizon" and are willing to step in and use this "overdone correction" of the market to "slowly dip your foot in and buy good companies with strong balance sheets" that you have been presented a great opportunity.
And why? Because according to them "stocks are on sale" and on sale is the time to buy anything.
Sounds good but those prognosticators on the sell-side of the market make a living from investors buying, and therefore you really need to do your own investigation to determine whether if in fact what they are saying is actually plausible.
And, that when all is said and done, you can feel comfortable buying stocks and investing your hard earned money.
This of course assumes that the viewers these sages are speaking to actually have any "free cash-flow" to funnel into anything other that surviving day-to-day. But I digress.
The bottom-line is that nobody really knows what's going to happen because if they did, well, they wouldn't have to be selling you investment ideas to make a living.
What we do know is that we live in a world where the economy is a global one and that as bad as the U.S. economy and U.S. government fiscal health looks, some EU countries like Greece, Spain, Italy, Portugal and Ireland (the PIIGS) look exponentially that much worse.
Caveat emptor my friends, caveat emptor!
Some links to read in order to better understand the GLOBAL economy!
Business Insider: Friday's US Jobs Report Is So Stunningly Bad It's A DangerTo The Global Economy
The Wall Street Journal: Dow's Drop Is Worst This Year
Reuters: Wall Street sinks on jobs data, Dow negative for 2012
The Economist: Spanish woes: Hard pounding
Daily Mail: 'Beware a rerun of the Great Panic of 2008': Head of World Bank warns Europe is heading for 'danger zone'World growth at risk as US employment stumbles
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