Wall Street Reminder: When Everyone’s Selling, Somebody’s Buying
When Wall Street falls sharply and stocks plummet, the media is quick to note that there are lots of sellers in the market. But alas, the media forgets to tell the other side of the story: During a major Wall Street sell-off, somebody is doing the buying at reduced prices. Why should VARs care? That’s easy to explain.
Sure, the Dow Jones Industrial Average fell more than 600 points on Monday, Aug. 8. While thousands of investors were screaming “sell, sell, sell” as stocked plummeted, some gutsy investors stepping in and quietly said “buy, buy, buy.”
The key point for the IT channel: When Wall Street gyrates dramatically, don’t get consumed by the one-day event. There are buyers and sellers and ultimately the market will stabilize — as will your business. Maintain a long-term view, and continue to believe in key trends — cloud computing, mobile computing, virtualization, etc. Generally speaking, those trends don’t disappear during a single-day market decline or multi-week correction.
Even if the economy limps along for a bit, somebody is buying up all those shares at deflated prices. So keep the faith. Believe in your business. Believe in technology’s ability to automate business, drive efficiencies and boost profits.
And remember: Even the market “experts” often don’t know what they heck they’re talking about. Anybody else remember this classic clip from Jim Cramer?:
Cramer was wrong. Bear Stearns got crushed. And you’re still in business. Stay focused.