Dow Jones, Nasdaq, S&P 500 (2)

Four of the most renowned investors within the last century repeatedly bought stock shares during periods when major market indexes were falling to real lows. As we’ve seen this year, the stock market reacts to news investors perceive either positive or negative for any variety of reasons. Buyers and sellers meet directly in a fair, open and orderly market to access the best possible price through the interplay of supply and demand. This requires one to have a fair idea of the circumstances beyond the company’s control that can affect the stock prices.

You can start with just $500 and build from there if you later decide that international stock markets suit your portfolio. By doing this, you pay less for a share of stock than it would be worth at the company’s liquidation from a worse-case scenario. While investors have been bailing out of mutual funds as fast as …