Thursday, August 11, 2011
Be Careful Reading Too Much Into One Day In The Market
As I write this we are having a triple digit up day in the Dow. Yesterday was a triple digit down day and the day before was a triple digit upday. Whenever we have moves like this you always see the talking heads on the news talking about how we have hit bottom (on the up days) or how the drop is bottomless (on the down days). If you pay too much attention to all that you will either lose lots of money or drive yourself crazy, or both. Day to day moves are typically just noise, look at the overall trend. In the beginning of the year the trend was up, now it is down. I cannot give investment advice on this blog but suffice it to say you should be doing things differently in an uptrend than you do in a downtrend.