Today, the Dow Jones Industrial Average fell 366.94 points, or 2.64% to close at 13522.02, the Standard & Poor’s 500 index fell 39.45 points, or 2.65% to close at 1500.63 and the Nasdaq Composite Index fell 74.15 points, or 2.65%, to close at 2725.16.

Twenty years to the day of Black Monday, the Dow had its worst day since August 9 and hit its lowest level in more than a month. Black Monday was also the day that I decided to play in the stock market.

Back in 1987, the market had been climbing - and having a few extra dollars to play with, I went to see my broker at Shearson Lehman Brothers to talk about options. We chatted for a while, and I purchased a few thousand dollars in options. In the next few minutes after the trade was executed, we started to watch the market slide. It hadn’t slid much by the time I had left there… but by the end of the day -  the market had cratered.

Unlike real estate, options can quickly become worthless. I know, because mine did. And stocks can lose their value quite quickly, too. The lesson that I learned back then was that the stock market was a place with a few winners - and many losers.

My feelings for the stock market have changed, as I am a little older and wiser. The long term prospects for the stock market are fundamentally very good - but your stock portfolio will not give you a place to rest your weary head at night.

The uber-wealthy look for market corrections as a way to increase their wealth… and no one can truly time the market perfectly. They look for an excuse to get out when the market is up - and climb back on board when the market is down. Maybe you’ve heard the saying, "Buy low and sell high".

Today we have a correction in the real estate market. Is it the best time to get in? No one knows for sure. There are plenty  of opinions on both sides of this issue. But the fundamentals are good. There is plenty of inventory - demand is down - interest rates are good - and the lending climate is starting to improve… at least for the creditworthy. If you’re thinking of moving into a more expensive home - it’s probably an excellent time.

Some pretty smart stock market investors are getting jittery with the upcoming Presidential election, as the fear of increases in the capital gains tax may cause a selloff in the stock market before the election… and that money is going to go somewhere. Do you remember where the money went after 9/11 - when the stock market was hit hard? That’s right. Real estate.

It wouldn’t take much to boost the average home price back up 10% or more, as once the housing market begins to head back up - potential homebuyers on the sidelines will get in and force it upward… possibly to new highs.

Are you ready  to take advantage of this correction?