The HARD Part of STAYING the Course

RIGHT NOW WE ARE IN THE MIDDLE OF IT!

Source: Yahoo Finance

The DJIA closed down 2,014 points yesterday., It was up 800 earlier today, is giving up its gains and is almost unchanged as I write! Yesterday's 23,851.02 close takes us back to the Dow in Jan 2019! The market bottomed the day after Christmas 2018 hitting a two year low of 21,712.53!  That's still 2000+ points away from today's 24000 or so price level.

The stock market is one of the few machines that can actually go backwards in time. If you missed the rally of 2019, here you have another bite at the apple. BUT, no one knows if there is a better bite around the corner! What we do know is that most of us do not buy on major declines but here is your chance to fix that and BUY STOCK INDEX ETFS NOW!

And if you are already fully invested, its HARD to stay the course and not sell. It may even be a measure of character.

Imagine that the Dow is a stock whose high was 30 and its now 24. Its not all that extraordinary a move and panic may not be warranted. So long-term investors who missed the first move have a second chance. How LOW can it go? Good question and there is no answer except we can look at history and make guesses. A tremendous support level appears to me to be the 18,000 level before the 2016 election. That's a good 6000 points away and would completely evaporate the entire Trump rally.

The stock market never came close to wiping out the rally under Obama. Even the 2011 decline ended up as a blip on a long term 300% rise over 8 years. Perhaps the economic threats of closed borders, tariffs and Trump jingoism, not to mention the coronavirus, are taking its toll.

PS: the market rose 600 points since I started writing this post, DON'T MISS THIS CHANCE TO BUY!

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Disclaimer: Posts are for education only and not investment advice, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors.