Live Chat: Opportunity Amid a Wild Market
Aug 10th 2011 10:02AM
Updated Aug 10th 2011 10:04AM
This week has been one for the record books. Monday was the sixth largest point drop in Dow Jones history. Tuesday was the 10th largest point gain in its history. In percentage terms, both rank in the top 100 craziest days the market has ever seen.
These wild days hammer home two points. First, you can't time the market. Those who sought safety by selling during Monday's free fall missed one of the largest rebounds ever on Tuesday.
Second, huge daily movements often make little sense. American businesses did not lose 5% of their fundamental worth on Monday, only to become 4% more valuable on Tuesday. What changed is the price.
And as Warren Buffett says, "Price is what you pay. Value is what you get." Roller-coaster markets might be gut-wrenching, but they can be a gift for those looking for bargains. We have no idea how much further markets might fall. But we are convinced that the plunge over the past two weeks has created opportunities for long-term investors.
From now until 5 p.m. EST, Motley Fool columnists, analysts, and advisors will be hosting a live chat. Please join us below. Ask a question, answer someone else's, pitch an idea, or just see how the Foolish community feels about their investments. We're expecting a large volume of comments and can't answer them all, so don't be discouraged if yours isn't addressed. See you there!
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