Dow Down 1000, Then Up 1000 - For the Week!

Dow Down 1000, Then Up 1000 - For the Week!

Is this the new paradigm?

It looks like hedge funds finally brought the economy to its knees this week.  The market collapsed, and only recovered after the government intervened.

I am not sure whether this is the new paradigm.  If it is, it is amazingly scary for investors who need to rely on some sort of stability in their savings.

Investors probably should be investing in the market for the long term (even though the market has gone nowhere for 10 years).  But, if we see more weeks like this, investors will flee, will tell their children and grandchildren to flee, and we won't see individual investors put money in this market again for generations.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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