DOW Hits below 7,000...is this the end?

Today I saw something that I have not seen since 1997, the Dow hovered around 7,000 points. Back then I was about 16 years old and was right in the middle of the tech bubble. I was invested in Amazon.com and I'm guessing around that time it was in the 3 digit mark. Back then Dow 7,000 was a great thing, now that strikes Armageddon. Today's investors look at this as horrible, disgusting, unspeakable...etc. On top of that the government gave another 30 billion to AIG, so now we're broke and in more debt what does this all mean? Does it mean we are going to hit Dow 6,000, 5,000, 4,000? I think not, I think the market is incredibly over sold and we are in a panic mode. Which is understandable, housing has yet to stabilize, employment numbers (which are out next week) are not looking any better and the there is no clear sign of direction with the market, except for down. So what do you do with your money now.

Well the are two scenarios I like to think of:

1. You are in the market and have been for the past 2 years or so and don't know whether to cut your losses or stick with you "underwater stocks". I say stay with your holdings if you can stomach the losses and are invested in well balanced innovative companies. Companies such as Apple, Goldman Sachs, Hewlett Packard, Coca Cola, Jack in the Box, to name a few. It will take time and we will see positive strength in a year or so from these great value companies.

2. You have about 10K in your investment portfolio and are ready to invest but are scared shitless to throw your money out there. Well, you probably have no experience investing period so your stomach is probably, "light" at this moment. Keep saving your money until after March, then start looking at good investments. Starters like, Exxon Mobil, Phillip Morris, Apple, Caterpillar, US Steel, General Electric. These are great buys now but will take time to stabilize themselves again.

-Now if you can stomach upswings then trade in these companies now but set goals for

yourself. Do not, I repeat do not get greedy with your gains. If you want to make a gain

of 2 points a share then hit that point and sell. This market is too volatile to be playing

around with 10K.

This is truly what I believe and foresee happening in the next month or two. So bare with the market but do not become a bear...get it? If you don't email me...haha