The financial markets are closed today for Memorial Day and Wall Street could used a little breather.
The Dow Jones industrial average has been down for five weeks in a row, something that hasn’t happened since 2011. It’s a shame the markets are focusing on trade issues and political issues rather than the performance of individual stocks.
There’s an old expression that says, “It’s a market of stocks, not a stock market.” I own some stocks that have reported good quarterly earning but finished lower on the days trading because the report came out the same day as a big decline in the overall market.
Now comes the hard part. If you decided to sell your stocks because of the recent volatility you will need to get back in eventually. But when? People who overthink their investments are quick to sell but hesitant to buy.
John Bogle, the father of index investing once said you will never pick up the Wall Street Journal and see the front page headline saying “Rally starts tomorrow.”
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