Once Again, Look Beyond The Headlines And Meredith Vieira’s Interviews For The Truth

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I don't know what was stranger on The Today Show this morning:

• Meredith Vieira's back-to-back interviews with Jim Kramer and J.K. Rowling
• Jim Kramer looking like a fish out of water in front of a camera
• Watching Lester Holt and Matt Lauer (1) share the anchor desk and, (2) actually seem to care about the Lindsay Lohan story

If you watched this morning, you know what I am talking about. 

You also know that Mad Dog Kramer spent some time discussing yesterday's stock market losses.  The papers are doing the same today so, like we always do, let's talk about this in plain English.

Here's what you need to know:

• The markets lost 300+ points yesterday
• A 300-point loss is not a big deal in percentage terms -- it's just 2.3% of the overall average
• On a points basis, a 300-point loss this doesn't even crack the Top 10 of daily losses

So, historically, yesterday is just another day of trading in the markets.  But, what may make it different going forward is that yesterday losses it sourced from worries in the credit markets.  This includes mortgage lending, of course.

The more that investors worry about weakness in bonds (which are a major part of lending), the fewer buyers there will be for bonds.  Fewer buyers means that the the prices of bonds will drop.

Lower bond prices creates higher interest rates on bonds and that pushed mortgage rates higher.

For now, keep your radar up.  If you are invested in stocks, don't react too swiftly to the headlines.  Many passive investors lose money when trying to time the market's ups-and-downs.  If you're nervous about your exposure to stock market fluctuations, speak with your wealth planning professional for advice.

The Dow's worst day ever remains Black Monday on which the market lost 22.61%.  Since that date, however, the Dow Jones Industrial Average has added more than 12,000 points.  Investors that stayed the course endured temporary pain, but emerged as winners.