How to Be Happy About Today's Stock Sell-Off

For one thing, your 401k contribution goes further: Felix Salmon
By John Johnson,  Newser Staff
Posted Aug 4, 2011 6:38 PM CDT
How to Be Happy About Today's Stock Sell-Off
An electronic board displays trading activity on the floor of the New York Stock Exchange Thursday.   (AP Photo/Jin Lee)

Let's see: Europe's stocks tanked, US stocks tanked, Asian stocks will no doubt tank, tomorrow's jobless report is likely to be awful, and "it’s hard to see where confidence and optimism are going to come from in the coming months," writes financial blogger Felix Salmon at Reuters. But it's not all bad: Cheaper stocks mean "your 401(k) contribution goes further than it did a few weeks or months ago." And "if there ever were serious doubts about the USA’s creditworthiness, they’re gone now," he writes, citing the low yield on 10-year bonds.

"Put those two things together, and you can even be quite happy about today’s sell-off. If you’re a debtor rather than a saver, then falling interest rates are good for you. If you want to buy a house, then falling mortgage rates—not to mention falling home prices—are also good news. And if you want to invest in some wonderful future income stream, then money’s cheap right now to do so." Read his full take on today's chaos here. (Read more stock market stories.)

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