Some Friday Perspective on the Stock Market

The Evening Campaign Update

A little perspective on the stock market seems in order.
 
– Stock markets never progress in a straight line, either up or down.
 
– The Dow had risen by over 20% over the last year.
 
– The stock market, on average, has a 10% correction about once a year.
 
– Before this week, most market analysts would have told you that the markets were 3-4 years overdue for a 20% correction.
 
– As of today, the Dow sits at almost exactly the same level it was at 6 months ago.
 
– As of today, the Dow has dropped about 15% in the last 7 trading days.
 
– So it is likely it still has another 5% to go.
 
Just as with the Coronavirus, there is no reason to panic, as much as CNN and MSNBC would love for you to do so.
 
That is all.

4 thoughts on “Some Friday Perspective on the Stock Market

  1. Carlos Dangler - February 28, 2020

    Whew! Thanks for talking me down, David!
    I was thinking of cashing out the rest of my 401K, buying a plane ticket to China, and start licking doorknobs.

    1. Gregg - February 28, 2020

      Very good Carlos,

      Great perspective Dave – very reassuring.

      Some people believe the stock market is a crap shoot, a way to get rich quick. Others see it as a long term investment and largely ignore the peaks and valleys.

      Ten years ago the “One” blew up the budget with built in deficits of a trillion plus dollars per year because the congress has refused to craft a legitimate budget year after year – most should be charged and/or voted out for that betrayal. Living on continuing resolutions and omnibus spending bills masquerading as legitimate fiscal policy are a disgrace. Trump came in with an agenda to rebuild our military and was forced to “compromise” (blackmailed) to get the military fixed. I had higher hopes for better fiscal budgeting after he proved that we would survive a long government shutdown.

      One big difference between QE 1, 2, … the “One’s” stimulus/porkulous and Bush’s TARP/bank bailout was it was our government/tax money that wasted and it stimulated nothing but Democrat donors. On the other hand, Trump’s economy and his policies represent and drive real private sector growth producing much private sector wealth.

      I believe the market correction and the virus threat/hype will soon pass and markets will return to normal. After fearmongering and milking virus for all it is worth, the MSM will move on to the next anti-Trump narrative.

      However, when Trump wins reelection with GOP majorities in both houses, he must get a handle on our deficit spending. He must bust the last legacies of the “One’s” regime. I’m hoping the only legacies that will (unfortunately) survive from the Obama reign are the two bimbos he put on the SC and the casting in stone of the unfortunate achievement of doubling the national debt and accumulating more debt in his eight years than all of the prior 43 presidents combined to no good purpose.

      If Trump’s second term sees two or three conservative SC appointments, and a couple hundred other judges installed, a real balanced budget, the draining of the DOJ/FBI/IC sewer with punishment, total repeal of Obamacare, and a fundamental reform of healthcare and the FED, he will go down as the greatest president in history.

      I’m not asking for too much, am I?

      1. Jimmy MacAfee - February 28, 2020

        I think that’s a reasonable, realistic scenario. There are other scenarios, but yours is more likely now that President Trump has started getting rid of the saboteurs – in fact it is predicated on that, and there’s a lot of work left to do before it can be done in earnest.

        1. Gregg - February 28, 2020

          Thanks Jimmy, appreciate you kind feedback

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