How to Survive a Volatile Market
Volatility (n): The tendency of prices to go up and down sharply over time.
Given that definition, it’s pretty clear that we, as investors actually like SOME volatility (the “up”-part). Today’s blog post is directed to the majority who really don’t like the “down” part of the volatility equation. Those who enjoy that part (and who probably also enjoy paper cuts, motion sickness, and receiving fruitcake at Christmas) will likely not benefit from reading further.
Does the Speed of News Availability Affect Your Investment Return?
With the recent market volatility investing with a buy and hold mindset may have gained some merit related to your investment return. The only way you will ever know if an investment decision (buy, sell, hold) was a good one is by looking back. When you do look back over time you gain a whole new perspective that wasn’t available when you had to make the initial decision.
Our Thoughts on the Recent Market Sell-off? Looks Like A Good Time to Buy Equities
Are the concerns we are seeing in the news and the recent market sell-off telling us the bull market in US Equities is over? Are we now entering a recession?
Of course, there are no guarantees in investing, but based on two of our favorite indicators we think the answer to both questions is NO. The bull market is not over yet and we are not in a recession.
Stock Market Headlines Grabbing Your Attention?
As we see increased volatility in the market, do you find that news headlines are grabbing your attention? It’s no wonder you’re attention is piqued. Consider the following ways headlines could be written:
“1,000 point drop in the Dow” versus “2% drop in the Dow”
“Dow travels 20,000 points” versus “Dow remains unchanged in volatile trading day”
The above two statements would be saying the same thing for the day’s market action, but one draws your attention more than the other.
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