All right, perhaps panic is too strong a word, but my goodness, it certainly does feel like one. The Dow Jones Industrial Average fell 5% today and is now down 30% since January 1. The S&P 500 is down 33.7% year to date and the NASDAQ is off 35.6%. This is indeed a bear market, but there is nothing rational about it whatsoever.

The sell off appears to be about nervousness investors are feeling about the future, the global economy, the bailout, corporate earnings. I try to keep a cool head, but the Dow is down 800 points in two days and even I wonder where it’s going to end. Then I remember what Warren Buffet said…