In fact, a slowdown gives you a chance to buy shares of high-quality companies at low prices. Earnings aren't likely to go to hell. George Irving of Severna Park, Md., figured some stocks were being unfairly pounded Tuesday, so he bought 156 shares of Palm, the maker of handheld computers. The Fed is your friend, too. When interest rates fall, good things happen.
Lower rates make it easier for businesses to borrow and expand.
And stocks become more attractive compared with money funds or bonds. Falling rates don't mean instant gains. The Fed pushes rates down because the economy is slowing, and rate cuts take up to 18 months to take effect. So there's no need to rush in. Still, it's good to have the Fed on your side.