| These days, there are some amazing misconceptions | | | | get rich off of the stock market, are buying stocks |
| about the Stock Market. While it IS true that the | | | | right now. They know that there is little to no |
| things people are afraid of are a reality, their fear is a | | | | competition. They know that they may be the only |
| complete misunderstanding of the situation. Let's look | | | | bidder for a share, especially if the stock is thinly |
| at this. | | | | traded. They know that if they buy now, they can |
| The Stock Market has Fallen | | | | sell when the price goes back up. |
| It's true. The Stock Market has fallen. It's also true | | | | When prices decrease, benefits increase. |
| that nearly everyone is afraid to do anything with | | | | Another little fact that the uninformed don't know is |
| the stock market. This is the essential mistake that | | | | that when a stock price falls, the dividend stays the |
| people are making. | | | | same. When a dividend gets declared, it is declared in |
| You can see all over the news media stories about | | | | dollar amounts. When a stock price falls, the |
| the bottom falling out for several stock investors. | | | | percentage on that same dividend increases. Let's |
| Retirement plans have plummeted, savings plans are | | | | say that you have a $100 stock which has a petty |
| at the lowest point in our lifetimes, and corporations | | | | $2 dividend. This creates a 2% annual return on your |
| are needing bail outs. The thing of it is, if you have | | | | investment. When your stock falls to $40, the $2 |
| the right perspective, these are actually positive | | | | dividend is still a $2 dividend. The percentage just |
| opportunities. | | | | increased to a 5% annual return. |
| Have you ever heard the phrase, "It's a buyer's | | | | In a climate like this, sellers are completely grateful |
| market?" That's precisely what's going on here. When | | | | for any bid that comes along, any bid at all. Just last |
| stock prices are low, you buy. However, because the | | | | month, I chose a new stock broker and wrote him |
| market is SO low, everyone is afraid to jump in, and | | | | an incredibly large check. Warren Buffett is doing this |
| there are very few buyers. | | | | very same thing. At this very moment, when |
| What can a seller do with this situation? They can | | | | everyone else is in panic selling mode, he is |
| only do one thing: keep lowering their price until | | | | converting all his cash assets into equities. |
| someone buys. These stock owners are struggling | | | | If you want to catch the brass ring in this stock |
| and hoping and praying for buyers. This is a perfect | | | | environment, it's time to change your thinking. Now is |
| climate for buyers to jump in. | | | | precisely the time to buy stocks. Now, more than |
| Rich people know this, and have known it all along. | | | | ever, it's a buyer's market out there. |
| The smart investors, the fearless people who actually | | | | |