so as everyone scrambles for their stocks and securities in this “pending recession” i think to myself…. why is everyone selling?

historically the market has ALWAYS recovered. not one single time has it not… so there is no need to run for the banks as they did in the 1929 market collapse.  it is precisely during these times that you want to buy! i think of my favorite person in the world that is still currently alive, Warren Buffet.  the Berkshire Hathaway guru himself has made almost all of the money that he has by following this very simple rule.  “buy low, sell dear” if you are always putting money into stocks that are low. and you never sell unless you are making a profit then you should be doing perfectly.  of course this is simple to say but when you are dealing with your own money, how many of us can calmly and dispassionately look at our portfolio dropping and say… “lets put more money into it!” but that is exactly what i and Mr. Buffet would advise.

 So to help you in this most difficult of endeavors, i have a few suggestions.

one, always look for undervalued stock. by this i mean look for low share price with high PE (price to earnings) ratios.

two, listen to the news. if any of you have been listening for that last few weeks then you would know that Microsoft is thinking of buying Yahoo! guess what if you had bought Yahoo! 2 weeks ago… you would be up over 50%…

third, and lastly, remember that the stock market is a long run game. not a sprint. it will come up… it always does. just hold onto your stock and it will go up.