And from the past few days:
“Stocks suffered their worst losses in seven years as the failure of investment firm Lehman Brothers Holdings Inc. and the sudden sale of Merrill Lynch & Co. stoked investor fears of even deeper problems in the nation’s financial system.” Boston Globe
King: Is this a good time to get into the market?
Orman: No. It’s not a good time to get in with brand-new money. I would let these markets kind of wash themselves out….Are you kidding? These are the markets that you just sit on the sidelines and wait on the sidelines and stay away from them until everything works out.
Well, I disagree. I think the best time to get in the market is when everyone else is getting out. No one can time the market but I think if you have the right long term investment strategy this is as good a time as any to get in the stock market. Market emotions tend to cause people to make poor investment decisions as illustrated by the following two graphs.