The flip-flop marked the latest reversal for a stock market that has been whipsawed by worries over the worsening trade relationship between China and the U.S. and the fallout it may have on the broader global economy. The market plunged Monday, bounced back Tuesday and see-sawed Wednesday. Not exactly how you want a stable partner in your investing life to operate.
You all know what I’m talking about, if you are of some aged adult experience. We’ve all run across at least one romantic partner who behaved in a toxic manner. But they didn’t start out that way, of course in the beginning they were stable, dependable, someone that you could be the core of your life around. And then something very drastically shifted in them; lying for no reason, unpredictable, extreme mood swings up and down that brought the entirety of the relationship crashing down. That’s exactly how the stock market has been asking for the better part of the last five trading days.
The recent volatility is a stark contrast of how the market operated for the better part of a year and half. For all of 2017, and majority of 2018(besides the final quarter) the market was a beacon of stability. But got the last 8 months, the stock market has been very moody. It has been that toxic lover has no handles of its bearing from day to day. Two hundred points up, five hundred points down, a loss of $1.2 Trillion in market capitalization here a gain of $500 Billion there, is enough to make have to
make appointment with your therapist.
But let me give you so HOPEFULLY, insight about this current market condition. No matter how toxic or unstable the market seems at any given time, it always come back to even kneel. The stock market crashes of 1929 and 1987, but more recently the Great Recession of 2008, all show the market more than recover but THRIVE! You must have the patience and tolerance to within a host of daily struggles to reap the rewards of long term value. The fundamental of this economic and Global Market are sound and if not for the trade war that seem to be occurring between to global economic powers the market would be operating on normal metrics. So relax and look for opportunities to exploit pullsbacks that would otherwise not be available.
Jamaal W Vetose
Todd Capital Investments