Michael on September 22nd, 2008
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What a crazy week it was in the market.  Yet, as you’ve no doubt heard, the Dow Jones wound up down less than a percentage point last week.  Yet with the extreme volatility, there was plenty of pain inflicted along the way.

Personally, I made no trades last week. None.  But trading volume was at records.  Sure, most of it was by Wall Street types, but it wasn’t exclusively so.  In fact, yesterday, while I was reading Friday’s Wall Street Journal -

You: Yesterday was Sunday.

I am aware of that. I have two small kids, remember?

You: Can that be an excuse for everything?

Do you have kids yet?

You: No.

Just wait.  Anyway, I was reading an article and it spoke about how one investor had sold a substantial percentage of his stock holdings at the opening on Thursday because he couldn’t stomach the losses.  Now, since this article was written on Thursday for Friday publication, what the writer didn’t discuss was the fact that this individual investor locked in his losses. He wasn’t around for Thursday and Friday’s enormous gains which, my guess is, will both be among the top 10 or 20 days of the DECADE. He missed them both because he timed the market. Bad move. (And I’d be saying the same thing if the market went way down Thursday or Friday. True, he would have been luckier, but it would still have been a bad move.)

But that’s enough about the market for today, because that’s all anyone is talking about. Carnivals are more fun, aren’t they?  This week’s carnival of personal finance was just posted by Sound Money Matters and featured my answer to the question What should I do with my raise?

The best other article out there for the week – a quick read and a reminder that no good deed goes unpunished – is Taking Charge’s post You are your own best credit repair company which shows (in a cross between a Top 10 list and bad poetry):

  1. You really do need to check your credit report
  2. From all three credit bureaus
  3. Once a year.
  4. You may find errors,
  5. You’ll have to do the research – yet
  6. Even if you’re right
  7. You have to get them to do their job.
  8. They probably won’t
  9. So you’ll have to do it for them.
  10. It will be worth it.

I wish it weren’t so. But it is.

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