LAST WEEK WAS A REALLY DOWN ONE FOR THE STOCK MARKET, ESPECIALLY TECHNOLOGY. TIME TO SELL? PANIC? NO WAY!

The market doesn’t ever go straight up, nor does it go straight down!  Besides, investing should always be considered a long-term vehicle for building you resources to fund education, the new house, retirement, etc.  And certainly, it should not be engaged in for a mere one-to-three years.

The current upward climb in stocks is just a continuation of the sustained economic rally that started during President Obama’s Firm Term.  If the numbers look bigger, keep in mind that, let’s say, a one percent rally, or decline, with the Dow Jones Industrial Average at today’s 23,000, will be significantly more than the Dow declining toward 6,500, which George W. Bush let for Barack Obama.

Lately however, many investors’ euphoria has been based on the assumption that the GOP Tax Scam would jumpstart the market run-up even more.  That sort of thinking should have been quickly dismissed by anyone who looked back at the Republican Party’s recent inability to “Repeal and Replace” Obamacare.  In essence, after ten months, the Trump Regime has produced no meaningful legislation: just photo-ops!

When you see a market decline, there are several key points to consider:  Does it effect the overall stock market?  Just one industrial sector (health care, financials, tech, etc.)?  Or, is it limited to just a few stocks?  And then, try to find out what happened, and does it look temporary, or might the problem(s) be permanent in nature?

Those who jump, either to buy or to sell, without knowing what is going on, and why, often find themselves regretting their quick trigger soon afterward.  And many astute investors often find value when particular stocks or sectors have become oversold!

Over the past decade, several economists have won Nobel Prizes for their research, proving that the markets are irrational.  Before you consider making any changes in your investment portfolio, just think: are acting rationally—or irrationally?

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  1. #1 by cheekos on November 15, 2017 - 5:21 AM

    You may be concerned about the continued stock market decline. If so, just compare the current total value of of your investment portfolio, just compare the recent value to where it was–at the end of June, at Year End 2016, etc.. Perhaps that’ll make you feel better. But, sure to adjust for additions or withdrawals to the market value.

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