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Follow on Google News | 500 Plus Point DJIA Drop - There Will Be Days Like ThatDo you realize the market had been much too calm lately? It's been 4 years and a few days since the last 500 point drop. This isn't the first time we've had 500 point drops.
By: Googins Financial Advisors, Madison-Middleton WI Stock market sell offs are blessings to those who have money to invest - not that 5% down is that big of a deal - but over 50% down like we had in March of 2009 - well, that was hard to bear but people who invested then have doubled and tripled their money. Stick with your investment plans, but if you have additional money you could invest, it just might be an excellent time to add to your accounts now - be they retirement accounts or brokerage, after tax accounts. Better yet - use the opportunity to purchase stocks at GREAT prices. The people who invested on March 9, 2009, the bottom of the last Bear Market, have enjoyed seeing their accounts double and triple since then. For hard hitting serious information on bruising market days with a long term perspective, look for Brian Belski’s interview (BMO Capital), on Squawk Box Friday morning about 7:30 CST (8-21-15). For someone like me who has been involved daily in the markets since 1978, his prediction that we are in a twenty year Bull Market was wonderfully reminiscent of history. The 1970’s were a difficult time with inflation and interest rates reaching extreme heights. Interest rates were good for savers, awful for investors - the opposite of today’s environment. But then the eighties began, the securities markets took off and we enjoyed approximately twenty years of great returns. Oh, sure, there was that volatile weekend in October of 1987, but recovery came quickly. There were many other problems and worries and the markets reacted with percentage down days, but now the eighties and nineties are remembered as a “golden time.” The first decade of the 21st century gave us the aftermath of the attack on the World Trade Centers and the “remedies” Brian Belski talked about the number of times since 1990 that the markets have fallen 2%. 35% of the occasions took place in August, September, or October. Brian calls it “textbook” Worry and speculation cause it. Most concerns have two or more sides. One person worries that the Federal Reserve will raise interest rates forgetting that a large group of people will be benefited. China’s growth rate may slow but that can drive jobs and production back to the United States. The stock market may respond to all the worries and speculations that people have on a daily basis, but the long term chart of US Stocks shows the true picture of continual growth for those corporations running a good business. We are only a phone call away: (608) 836-3229. Louise Googins Karl Kuelthau Andy Yadro To learn more about investing low and selling high, contact Googins Advisors -- an independent investment management company in the Greater Madison Wisconsin / Middleton area with over 50 years of combined financial advice, planning and wealth management experience. http://googins.com/ http://www.googins.com/ End
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