Why I’m Not Too Worried About the Stock Market’s Latest Downfall

Why I’m Not Too Worried About the Stock Market’s Latest Downfall

The stock market has been downtrending the past four days, and I guess that could be considered a bad thing. We are obviously done with the Santa Claus Rally at this point, so it was just inevitable that the markets would recede just like the ebb and flow of the ocean tides. As a matter of fact, a lot of the stock market’s actions could be similar to phenomena in nature.

Today was a low point in the last four days, but we had some kind of a bounce back, so we’ll see if the market indexes have bottomed out and we are heading into an uptrend. Of course, we are affected by breaking news and events; like COVID, inflation, and economic, socio-political factors.

So, the chart above shows the DOW’s performance in the past 5 years, and this recent downturn is just a hiccup. Overall, we’ve seen a steady rise over this time period, but you can see the big dip that occurred in March 2020, which was a serious market crash that sent the DOW as low as 19,173 points. And, we’ve since bounced back and were at a recent all-time high, so naturally, the tendency is to come off of an all-time high… but overall, you can see that over time, the DOW continues to move upward.

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randomguru

Portfolio Manager & Musician

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