It's the percent that counts..
The Financial World makes a big deal of the market being up 250 points or down a similar amount daily. The question should be what was the percentage of increase or decrease. This is the number that really counts since depending on the Dow Jones S&P or NASDAQ levels it can be a big deal or not.. The Dow keeps flirting with 18,000 and with a 250 point rise the average portfolio should increase in value .014%..When the market was 9,000 a 250 point increase the value of portfolio would have increased .027% nearly double . This of coarse assumes the portfolio is 100% in the Dow and history tells you should not to put all our eggs in one basket. Stay diversified, stay disciplined and let the market forces work for you. In the last 10 years the S&P has provide a 9.2% annualized compounded rate of growth, but during this period it has been up 32.5% in 2013 and down 37..0% in 2008. Rule of 72 would suggest 9.2% the portfolio would have doubled. in about 8 years.
Don't let you emotions drive your investment decisions they are seldom correct!!!!
AT Compass Financial Strategies..we coach Disciplined Investments for an undisciplined world..