Federal Reserve

Don't freak out over the Dow

Don't freak out over the Dow

After the enormous, even unprecedented market corrections of the past several days, serious financial analysts are pulling out the big guns in an attempt to explain what is going on with Wall Street. I heard one describe it like this: “Everybody’s freaking out.”

Wow — please don’t get so technical on me. Then again, maybe a freak out is exactly what is happening. If that’s the case, how do those of us who choose not to freak out avoid doing so?

The markets of the past 50 years have been, and will continue to be, about one thing: growth. Companies whose earnings do not grow are penalized in the markets. Over the past 30 years, during which earnings growth hasn’t been stellar,...