To the surprise of executives within those firms, and their rivals, the stocks of these powerful companies were drawn into the crisis of investor confidence on Wednesday. Morgan Stanley, whose stock fell almost 25 percent, was considering a merger with Wachovia or another bank to help shore up its finances. Goldman Sachs’s stock fell almost 14 percent, and it had to rebuff rumors that it was seeking a capital infusion.
Investor confidence has gotten so bad that people are having doubts about some of the most secure investment banks on the market. It's not even warranted! This just goes to show that the stock market has a built in problem in being so dependent on investor confidence. Doubting investors can drag down prices even when business performance should indicate otherwise.
You want the advice of somebody with no investmenst, no experience in the stock market, and no financial education whatsoever? Buy or mine gold. It's the only thing that gains value no matter what occurs. Or better yet, pay off all your debts and put real cash into the economy.