The Dow Jones Losing Streak and Fear Inducing Headlines
The Dow Jones Industrial index is suffering it’s longest losing streak since 2011.
That is a dire-sounding headline. The Dow Jones must be suffering large losses.
The 8-day losing streak, it ended Monday with a positive trading day, produced a whopping 1.9% loss. That big 2011 losing streak produced a loss of 6.7%.
The financial news media exists to generate readers and viewers. Headlines that say current random market fluctuations are within normal expectations just don’t generate the same type of visceral reaction. Everything is fine doesn’t grab your attention, it doesn’t make you buy that newspaper or watch a few TV ads.
The financial news media knows wants you to be fearful. They know that in today’s modern world money equates to life. If they can get you to feel like your money and therefore your life is in danger, that you’ll pay a little more attention to them as you seek out answers on what to do.
Investment decisions made in fear will always lead to poor decisions. The people within financial news media know this but they can’t help themselves. Their business model depends on it.
It is time in the market not timing the market that will determine the returns in your portfolio.
The next time your pulse surges and your breath shortens over the latest financial news headline, stop. Breathe. Put the recent market moves into a broader perspective. Review your portfolio’s investment plan. Review your long-term goals and how your investment plan will help get you there.
Does selling now help any of this?