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Long Term Investment and Sub-Prime Mortgage Concerns

Assuming that you have decided to become a long term investor. You have done your homework and started to purchase some stocks.

The Dow Jone Industrial Average down by 281.42 (2.09%) last Friday. Are you concerned about how your stock portfolios are affected? Should you be even concerned at all?

The truth about long term investment is that you do not need to have sleepless nights. You do not need to be checking your stock prices everyday. You do not have to be concerned about price fluctuations on daily basis. You only need to be concerned about price movements over a larger time horizon.

Remember, all the stocks has been picked based on good fundamentals. Currently, the over market is still good. The long term trend for stocks remains positive. What does that mean to you? Your stock prices should be heading upwards in the long term. In the short term, there may be some days where the prices are down. Eventually, the price would go up.

The truth is that if you are worried about the daily changes in stock prices, you are not investing. You are probably speculating stocks.
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