Long-Term for a Reason

The markets are down by incredible amounts. Banks are failing. Large corporations are failing. Unemployment is extremely high.

Yes, the economy is in a downturn and has been for about the last year--this is a recession.

The company I work has a vision, and that vision is long term. Which is exactly what people need to be thinking about in tumultuous times like these - yet most do not, which causes panic.

In discussion with one of the partners in the firm today, we came to the conclusion that the majority of this market crash stems from one word: greed. Wall Street just became too greedy. It started with the credit crunch (mortgage lenders giving loans to anyway, including those who simply could not afford it and thus causing the defaults) and then escalated to the banks and corporations which invested in those asset-backed securities in order to turn a profit.

It is not very comfortable to be starting my career and post-college life in such strange times. But then I keep telling myself, that's exactly what this is. A strange time. The markets cannot keep going up forever, at some point they must decline - otherwise, inflation would be unbelievable. Just as the markets have done in years past, they will adjust. It might take a few months or a few years, but it will stabilize again.

Similar market tumbles have occurred before (1973, 1987, 2000, 2008) and they will continue to occur. It cannot be avoided. Who knows what will cause the next crash or when it will be - but all I know is that I am in this for the long term.

Just keep looking at the horizon!