If you haven’t yet heard (but being PF nerds like me, I suspect you have), the S&P has downgraded the rating of our (U.S.A) government’s debt. This seems to be causing a general nationwide freak out, but it has me wishing I had more cash to invest right now. This big dip is bad for people like my parents, who are thinking about retirement, but I’m trying to see it instead as an opportunity. I’m still quite young, so I’m more concerned with buying as many shares as I can snatch up! The way I see it, I’ve got at least another 30 years of investing before retirement, and given that the long-term trend of the stock market is upwards, I should be buying up my index stock now while the prices are low – my dollar buys more shares now than it will in a few years when the market is back up. I had originally planned on putting in my maximum$5000 to my Roth IRA over the rest of 2011, but with the big drop now, I might just have to put in the rest now!
How are you reacting to this current financial flop in the USA?