Dow Jones Drop of 387 points - A Mini-Panic?

I really get amused as to what the media writes about the stock market. The AP refers to the drop in the market as a "mini-panic." 387 points sounds like a big drop. That is about a 3% drop in the Dow. If the Dow was extremely negative for the year, I would start using words like panic. However, the Dow is well above normal averages and is positive for the year.

No, I have not turned bullish on things. I think that want we found out this morning in the news concerning banks in France is not good. The credit problem is a global problem. Unfortunately, this is a problem in the credit markets. Every day we can wake up to a new negative surprise.

I cannot stress enough the importance of understanding risk and making sure you are not in a situation where you could lose a ton of money. There are ways to invest in a declining market and make money. If you want more information, send me an e-mail at bob@prudentmoney.com.

My concern is everyone who is listening to financial media such as CNBC or Fox news (which is fair and balanced with everything except for the stock market) who is saying this is no big deal. This is a big deal.