500 Plus Point DJIA Drop - There Will Be Days Like That

MADISON, Wis. - Aug. 25, 2015 - PRLog -- Consider our goofy behavior: one day we worry China is going to rule the world, the next day we worry it may not grow sufficiently.  We carry on about the yuan down 3.5% and ignore that the Japanese yen is down 17.6%, the euro 16.4%, the Canadian dollar 15.8%, and the peso almost 20% - for the very same time period.

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” leading to bull markets in real estate and excesses that corrected violently between November 2008 and March 9, 2009.

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” - “the market closes lower on Thursday, overnight the International Markets follow, and selling accelerates in the U.S. on Friday.”

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/

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