Frantic market: Retail up, retail down...who cares?

Two days ago the Dow Jones Industrial Average (INDU) sank more than 140 points based partially on fears about potentially weak upcoming earnings reports from retail stores and fears that consumers were tapped out. It was an "I told you so" day for stock market bears.

Today as I write this report the DJIA is up about 160 points based largely on a positive earnings report from Wal-Mart Stores, Inc. (NYSE: WMT), the world's largest retailer, suggesting maybe things are not as bad as all that. (For more on this topic, see this post by my BloggingStocks' colleague Brian White.)

To me, the important lesson is that we are in the midst of a very jittery stock market with a large number of fair weather friends (traders) ready to jump ship at a moment's notice.

This situation exemplifies the importance of thinking long term and not investing in stocks based on daily news reports and speculation. I have made this point in most of my writings and today I make it again. If you do set your sights on long-term goals and invest accordingly you will be able to rest easy when the market jumps up and down.

Investors looking long term might consider out-of-favor sectors that pay high dividends, have long histories of growth and favorable fundamental metrics. Today that would be utilities, banks, insurance, pharmaceuticals and dare I say it, even something as crushed as housing stocks. You can find some of each in my Chasing Value section linked below. One of them that would get you into all of the above and is an old favorite when the market is shaky: Berkshire Hathaway (NYSE: BRK.B). See: Chasing Value: Berkshire Hathaway -- the time is now.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.