Skip to main content

600 Point Drop in Todays Market - Why all the Alarm Bells?

Run!, Run!, Run! Image result for running groundhogs Run!, Run!, Run!

Most news reporters today put the fear of god into you to be alarmed at the 600 and some odd drop in the market today.  Just like listening to a weather report from a Ground Hog, don't listen.  What they didn't say in their commentaries is that over the course of the last few months the Dow Jones rose over 1,000 points its fastest climb in history.  Look at the over all market from the last few months this correction speculated over a rise in interest rates is a lie!  Wait Wall Street would lie to you?

Wall Street has already known that the interest rate hikes would be happening, while a factor in the decline not the reason, the reason is because the steep climb over a short period of time caused Hedge Funds and Portfolio managers to sell to lock in profits, this happens all the time.  Reporters think this is such a huge number 600 points.  Yes years ago a 531 point drop in one day was a big deal that caused trading to halt so the market would not spin out of control, well the Dow Jones was at around 6,000 then; a 10% loss in the market would have to tumble 2,600 points by today's standards to match.

Ok, so my Darling Stock  NVDA took a tumble to $233 but we are in at $179 as of 8/30/2017 remember?  A month ago or so it hit $210 and it sparked a sell off?  Well that's the way the market works.  My website and blog is here to help you navigate through the literal crap and game they play on the little guy, the novice investor but we are in it for the long haul.  I will always advise you to seek out a licensed Financial Advisor for your own protection and am only giving stock picks for the purposes of entertainment; but then that's how this all started when I was entered into the Wall Street Journal Dartboard Contest Game ( more info see previous articles).  I am not saying all News Reporters get it wrong; I am saying take everything they say with a  grain of salt; listen to multiple people learn who you can respect.  You will find  patterns that make sense coming through their statements match mine, Kramer, Dave Ramsey, Susie Orman, Motley Fool, and a few others on Bloomberg and CNBC I respect.  One thing I can assure you at some point everybody gets one wrong, this hasn't happened for me since I advised a friend back in the 90's to invest in Intel, although she did not suffer a loss and she did receive a dividend.  The growth expected is not what I anticipated.  So although she made money, I think had she sold she could have put it in something better.

Now breath, that's right take a deep breath, I'm looking at you right now Edward Snowden style I see you didn't.  Breathe!  This is not the 1880's nor is it 1929, or 1988 the market is going to continue to rally this year I expect it to top 30,000.

Thank You Steve in Los Lunas for your question.

Comments

Popular posts from this blog

Custom Made Masks ~ by Sound Box Graphics ~ Print your own design

During this Pandemic we need to help local businesses and support local artists, around the world. I am proud to advertise for friends of mine to help their businesses. You can trust an advertiser on WilliamsWallStreet.com because I know them or have an association to them.  Williamswallstreet is free and will always remain free to my readers. Williamswallstreet is supported through donations like yours to the PayPal below. WilliamsWallStreet does not collect money from its advertisers and all proceeds go directly to the small business. Thank You my readers make it a joy to continue writing this blog. Author William Staab Winner of Wall Street Journal Dartboard Contest March 2009 Guided Tours Around Norway Tailor made to your interests! Tom K Bjore Facebook:                                                   @ExploreMyNorway  @Explore MyOslo                                    Intstagram: @explore_mynorway   @exploremyoslo Check out this website for some great

Portfolio Check In Lets See How We Are Doing?

 Well I apologize, it has been awhile since I have written an article and checked in with the portfolio but I have been watching our stocks and must say we have been doing quite well!  The overall portfolio has increased by 25%.  Lets do a run down of where we were at last time on May 10, 2020 and the two stocks we added to the portfolio since then AYRO on 6/17/2020 and ORBN on 8/8/2020. Stock                                                  5/10/2020                     2/23/2021 Alibaba   (BABA)                                                         201.74                           250.45 Alison Engines (ALSN)                                                 37.45                             38.15    Amazon (AMZN)                                                      2380.50                        3,145.91 Ayro (AYRO)                                                                  2.69                               6.59 Evo Transportation (EVOA)                                       

Happy 3rd Anniversary William's Wall Street .Com! ~ Mock Portfolio at 86.7% Return on Investment For The Year!

  So here we are again another year completed for Williamswallstreet.com and what a year it has been the Dow Jones at $29,000 at the beginning of the year and taking a huge loss due to the Covid 19 Pandemic dropping as low as to 19,000 and some change. We rode through the market ups and downs and by maintaining a level head were able to see a 86.7% return on our investment. While some of the stocks like Alison Engines, Norwegian Cruise Lines and Washington Real Estate Investment Trust have suffered. The stellar players like Nividia, Amazon and Tesla have really made this portfolio shine. William we have to admit you are doing a great job. Thank you Nancy Haloprin from Charlotte, North Carolina. Let's take a look at our Mock Portfolio: Stock                                              12/31/2019                              8/21/2020 Alibaba (BABA)                         $212.25                            $266.58 Alison Engines (ALSN)                   $48.32