By Clyde Noel

The bone-crushing drop suffered by stock market investors last Friday emphasized the risks in a portfolio, especially on a triple-witching day when everything comes together. Monday, the crush continued.

Triple witching happens four times a year - when the S&P futures contract expires at the same time as the S&P 100 index option contract expires. The option contracts on individual stocks also expire. The markets are typically very volatile on these days.

The Nasdaq Composite Index ended the week down 3.6 percent and is now off 9.4 percent since Labor Day and 5.8 for the year. The Dow Jones Industrial average fell 2.6 percent for the week and is now down 2.8 percent since the holiday and 5 percent for the year. The Town Crier index was down 3.25 percent for the week, but is up 12.97 percent for the year.

Experience serves as an important reminder about the value of steady nerves in bad times - and the importance of trying to hang in for the long haul.

Uncertainty is what investors hate most, so between higher oil prices, energy prices and the weakness in the Euro currency, they all contribute to this uncertainty.

For the short-term, the concern is going to be earnings. Higher interest rates and energy costs coupled with a decelerating economy and currency issues will cause concern. Investors are going to pay a premium for the companies that exceed earnings forecasts and have fair valuations.

Growth at a reasonable price should be the investors’ number one goal right now. Look at mid-caps with good earnings in growth industries and old economy stocks with new economy ideas.

Several companies whose stocks have shown losses since Jan. 1, made the news last week. Analysts are calling these stocks interesting buys including Hewlett-Packard Co., Apple Computer Inc. and Symantec Corp.

Noel, a seasoned investor, covers the stock market for the Town Crier.