The Drop in the Dow and Minneapolis Floor Sanding

The Dow lost 7% today. That is a lot of wealth. A lot of people are losing a lot of money right now. They are pulling their money out of the stock market and trying to find a place to put it. Maybe they should just put it under their bed, at least it will be safer then the market and the bank. I am just kidding, but there is some truth to it. Everybody is freaking out right now. As the legendary investor John Templeton would say, “There is blood in the streets.” He is right. But he also says the best time to invest is when everybody is too scared to invest. See, if people keep on pulling out of the stock market, stop paying their mortgage, and lose their jobs, values of assets can decrease very fast. Some assets should lose value because they are too high in the first place. But other assets are losing value not because they are too high, but because the psychology of people right now is in panic mode. A lot of investors are acting on their emotions. Companies are still producing profits, equity is still being created and people are producing value. However, some people see what is going on in the stock market right now and think everything is bad. That is not true. There are plenty of good businesses making a lot of money. The good thing is the share price is getting hammered and now these assets are deals, some might even become steals. This is the key. Look for undervalued assets. Some of the greatest investors of the 20^th Century made a lot of money buying companies and real estate that was very underpriced right after the Great Depression. People where too scared to buy them. So, look at today as an opportunity to create more wealth, not lose it. For a free floor sanding estimate in Minneapolis give me a call.