For those of you who watch the market on a daily basis, you probably know about all the big hoopla that occurred this week. People all of a sudden went into a huge panic and started selling for fear of even more huge drops in the market.

Generation X Finance has a good post about this. Here's a little snippet:

"...If you’re making changes to your holdings after the market has moved, you’ve missed the party. People hear the news of how bad the market is doing so they think by getting out and moving to something safe that they are protecting their portfolio from even worse losses. While in theory this could be true if the market continued to dive for an extended period of time that usually isn’t the case..."

[via Money, Matter, and Musings]