Market Volatility
Yesterday the stock market managed to lose 567 points and then gain 1,134 points ON THE SAME DAY. It ended 567 points higher that it started. And last Friday there had been a major sell off.
Understandably, this has made some investors quite nervous. The “volatility” doesn’t surprise me however. In my mind, the stock market is nothing more (or less) than a venue in which we can try to predict the future. We buy a stock that, for a variety of reasons, we expect to increase in value in the FUTURE. The volatility we see in the market reflects the simple fact that the future is VERY HARD TO PREDICT. And, it’s indisputable that the market can’t continue to rise indefinitely.
It’s important to remember, however, that even with Friday and Monday’s sell off, the DOW is still 6 THOUSAND points higher than when Mr. Trump took office. And, the fundamentals for sustained growth are still in place. So, as many money managers say, “hold the course”!