Keeping Stock Market Performance in Perspective

The plant market has been strong during the period of active activity since the end of the market probably in early 2009. While market activity can be measured in many ways, the Industrial Average of The Dow Jones has surpassed several thousand points so far in 2017: The Dow first reached the 20,000 mark on January 25, before reaching the 21,000 level more than a month later. mai. By the beginning of August, 22,000 marks had been broken. By the end of August, the smooth running of the fast-moving market had reached a boom. While no one can predict the future of the world, market analysts and analysts say we can see market volatility in the coming months. So how do investors keep all of this when they are trying to manage their finances? Here are three signs to keep in mind as you pursue the real estate market:

1. The true value of each reversal in the Dow index decreases as the market increases

Despite the fact that the Dow Jones average is used to provide a broad index of market conditions, the index includes the 30 largest company indexes. As the Dow Jones Industrial Index rises, the real impact of each change on its price will decrease. For example, when the Dow broke through the 2000 barrier in January 1987, it rose 100% from the first 1,000 levels reached 15 years ago. However, as the Dow moved from 1,000 points to 22,000 between March and August of this year, it was only a 4.5% increase.

The outlook is similar to the movements of the daily market. Markets are headlines when the Dow Jones average moves up or down, 100 points a day. 20 years ago, when the Dow stood at 8,000, a 100-point move in the market was a 1.25 percent difference in value. Today, the 100-point move is equivalent to less than a half-cycle cycle. In short, the 100 points in the Dow Jones Industrial Average do not say what the previous trend meant.

2. Markets can retreat from record highs

As real estate markets rise, histories show they will also fall. By the spring of 1999, the award had reached 11,000 awards. It moved higher for a few more months before the potential market crisis. The Dow fell to 7,286 in 2002 before returning to the 11,000 level in 2006. Similarly, the market rose to 14,000 in 2007 just before the start of a potentially strong market. It failed to reach that level until the beginning of 2013.

No one can predict what effect the trees will have in the next week, month or year. Stock markets are not visible in the short term, because differences are part of the behavior of the market over time. Changing prices is true for investors, but over time, the old assets have recovered.

3. Signs may not represent your wallet

Even if the site does have headlines, the work may not reflect your own budget. Emotions run high when markets are different, but don’t let fear get in the way of you. The stock market can be changed as a reminder to review your financial position and ensure that your asset mix is ​​aligned with your long-term goals. Remember that the most important factors in the success of an investment are your goals, the time you have to invest, your patience and commitment to saving.

Responding to the stock market or speculations about events that may occur in the future may be a good discussion for lunch, but keep in mind that it is not a proven investment strategy.

If you need help planning your financial plan and your emotions in the real estate market, consider working with a financial advisor you trust. A budget professional can provide you with a vision and help you move forward with your financial goals.

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