Good news, Our economy is going down?

If you haven’t noticed, the US economy is taken a huge turn for the bad. Stocks have tumbled and the over the past three days The Dow Jones industrial average has fell nearly 515 points. It’s a little scary to think that many stocks, especially those in the financial sector may continue to fall even more over the next few months. Why is this good news?

It’s not exactly good news for everyone, but for me and the hundreds of thousands of other investors who are under the age of 30, it’s wonderful news. Throughout history the market has went up and down with steady increases. It may seem that the market is in horrible shape right now, however the Dow closed at 11,740 today and it closed at 11852 on October 11, 2006. Sure, it’s the lowest it’s been in two years, but if you are young that’s great news.

The advice you’ve probably heard before still holds true, buy low and sell high, guess what we are low. We might not be at the lowest point but it’s still a great time to start investing or increase the amount you are investing. Many financial institutions have seen their lowest points in history. I personally have invested in some major banks over the past few months and even though they continue to drop even lower, I’m not extremely worried. I will continue to buy more of the stock because I have confidence they will increase in value.

My advice for everyone is to either start investing for retirement now or increase the amount you are currently investing. I think over the course of the next 5 years or so you could see growth potential of over 20% if you put you money in the right areas. Here’s to the future!