1 Answers: Dow stocks have lost 600 billion in value today . is this a good economy ?

Question

One day is not a reflection on an entire economy.

The Dow closed at 19,800 on Donald Trump’s first full day as president when the market was open. As I write this, it’s at 24,475. That’s a 23.6% increase in less than two years.

The all-time high of 26,828 occurred only nine weeks ago on October 3rd. It is now off by 9% since then.

That is what we call a market correction. The market was up more than 30% since Trump took office. In less than two years. That much of a rise that quickly was not really justified and a drop back down to just under 20,000 will not be justified. That’s not to say it can’t or won’t happen, just that if it does, it won’t be because the economy is actually terrible. The economy is still good – though I don’t believe it was as good as those who irrationally drove the Dow up so far, so fast, believed it was.

in progress 0
Anonymous 7 months 1 Answer 63 views 0

Answer ( 1 )

  1. This is not a good economy at this time and a terrible time to be buying stocks. If you think about it like valleys and mountains you want to buy in the valley and then let it grow to be a mountain of money and then sell. Next up you take that money and put it in safe investments like treasury notes or gold. Wait. When stocks hit rock bottom you buy in and diverdify. Likely a good one would be an ETF so you can buy the entire S&P500 and a low price and let it grow.

    You can also have another basket of investments whereby you can choose individual stocks like the next Amazon… likely Alibaba stock.

Leave an answer

Browse
Browse