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Showing posts from December, 2018

Looking for value in a Bear Market

George Bailey kept his head during the 1928 stock market crash when many investors chose to make a run on the bank or in his case the Bailey Building and Loan which by comparison to today's world would be a credit union.  Although we have had a choppy ride and the market is well under performance for the year down from the totals I posted in another article. This is the time to buy not sell those companies that have a strong upward potential like Apple or Nividia think of them as being on sale and a chance for you to have the opportunity to benefit from their eventual upward momentum.

Let everyone else panic; do not sell off your 401K or your EFT's or even your blue chip stocks (explained in earlier articles) at this time.  Warren Buffet included this poem by Rudyard Kipling in his 2017 Berkshire Hathaway letter to his shareholders and I can't think of anything that sums up what I am saying better than his statement:

If you can keep your head when all about yo…

Dow Jones down another 500 Points then Recovers ~ Bear ahead?

Sorry for the delay in putting out an article about the choppy ride of the recent downward turn in the market over the last few weeks but I wanted to be sure that I had a handle on the situation.  I needed to get a very firm grasp on it. Is a Bear market at our door?

During the day today the Dow Jones Average was down over 500 points.  While it recovered to -137 it is still down over -1400 points in the last 2 weeks and has not recovered from the previous downturn.  At the height of the downturn the Dow was at a low of $23,881.37 today; which means off of it's high for the year of $26,951.81 on October 3, 2018 or a loss of $3,070,44 in less than 2 months; that's a drop of 8.8%! The loss for the Dow for the entire year which began at $24,423.26 would be a loss of 0.02% is this significant you betcha!

Since this blog is for the novice investor I want to show how this would relate to your own savings account by giving an example so you can view the overall picture of what is rea…