Bloggers seem concerned about the temporary 1000 point drop in the Dow last week.
I don't think this price move changes anything. But it does remind us of something:
If you need your money back tomorrow (or really any time in the next few years) stocks are the wrong investment vehicle.
The day-to-day price of stocks is anchored in...well, it's not anchored at all. Stocks can fall indefinitely.
So my argument is this: any investment scenarios that are no longer appropriate for stocks (now that we "know" that the market is highly volatile) were never appropriate in the first place.
Having a 30-year time horizon for stocks implies that you can wait out the kind of excitement we're seeing.
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