by Paul Meloan
Ok, it's almost 5 pm ET on August 4, market is closed, and everything went down. I……mean……everything. Tonight the talking heads on various cable channels will try to explain it. Don't waste your time. A quick search on the google shows it was the biggest one-day drop since February, 2009.
You may recall that the S&P hit its "bottom" (at the memorable level of 666) on March 9, 2009. Since that day to today's close at 1200, the market has gone up 80% in 29 months. That's a compounded annual return of 27.6%. And that is AFTER a drop from its peak at 1370 near the end of April. If you just did the math from the last trough to the last peak, the total gain is 106%, or an annual rate of 34.8%. Check my math, but I think I am darn close.
So, who told you to buy stocks in March, 2009?
Who told you to sell stocks at the end of April, 2011?
Exactly. Keep that in mind as you determine your next move.
Better idea: shut off the noise completely.
the market is voting with their wallets
by Paul MeloanOk, it's almost 5 pm ET on August 4, market is closed, and everything...