Originally Posted by SomeCreep

Smart people know not to sell in panic. However, money managers are subject to politics and bureaucracy, so they are forced to sell even though they know it's not wise. Ultimately, they are responsible for other people's money. People who panic when they hear the word "disaster" on the news and want their money back. This is why the market goes down so much. This dip is a classic text book example of a buying opportunity. In the long term, natural disasters always always create buying opportunities. Market will be bearish for a few days, maybe a few weeks, but sooner or later the Japan Disaster story will grow old and not entice viewers. The media will move on and so will Wall Street, in the form of higher stock prices.