The US Stock Market was shaken this week by seemingly bad job growth numbers. Only 54,000 jobs were added to payrolls. That sounds like a lot of people, but economists were expecting about 170,000 to be added. Over 230,000 jobs were added in April, and all the numbers this year aside from January were over 200,000. May’s number of 54,000 was much closer to January’s number. It’s a big step back according to economists, and with unemployment on the rise, fear affected the stock market. The S&P 500 dropped 1.93% for the week.
With the uncertainty in the market, Warren Buffet’s quote on fear came to mind: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
So, should you be greedy and jump into the market? Is it time to wait for the stock market to go down before hopping back in? Or does that qualify as timing the market?
While you consider whether to run with the herd away from the stock market or to step boldly into the stock market, check out these great personal finance articles:
Punch Debt In The Face | I Hate Extreme Couponers
Len Penzo dot Com | When Good Personal Finance Practices Go Too Far
The Dividend Guy | Dividend Investing eBook – How To build a Never Ending Cash Distributor
Sweating the Big Stuff | Asking Is Always the Best Solution
Mom’s Plans | Online Summer Math Enrichment Programs for Kids
Balance Junkie | The Dow Will Reach 20,000: Altucher
Wealth Informatics | National Safety Month : Home safety tips
Credit Karma Blog | Forget it, I’ll Just Eat Books: How I Confronted My Spending Habits
Narrow Bridge Finance | Mint.com Alternative – Adaptu: The Showdown of Mint vs. Adaptu
Free From Broke was featured in the following Carnivals:
Festival Of Frugality – Memorial Day Edition
Totally Money Blog Carnival #21: Memorial Day Edition
Carnival of Personal Finance #311: the Filboid Studge edition | Miss Thrifty
Carnival of Wealth #40 – Memorial Day Edition — Personal Dividends – Money+Lifestyle
Yakezie Carnival: Goals Edition
I am thankful that I have steady work given the level of unemployment in this country. I am also thankful that my daughter found a summer job between years at college. She is working as a lifeguard at the nearby waterpark. Her situation brings up two important points. First, knowing someone on the inside helps get your foot in the door. Second, having some special skills (swimming and lifeguard license) can help.
I think most of us don’t want to believe it’s the case but knowing someone or having a contact for a job is HUGE! It’s so important to build and use your network.
And having a skill that others don’t? That’s a job-builder in just about any career. Do what others can’t or won’t and you’ll be employed.
As far as the market goes we’re keeping to our plan of investing with a fund geared to our age group. The market goes up and down, but in the long run I think it will be ok.
I’ll be watching the market this week to see how it does, but it will not change our plans.
Thanks for including Narrow Bridge’s post and mentioning Adaptu!