On Thursday Facebook stock suffered the largest single day loss of market value in history. At one point the stock was down 24%. It recovered to close down 19%. $119 Billion of market capitalization was lost. The reason behind the drop was a combination of the company reporting quarterly earnings
After 20 years with SEM I should not be surprised to see how many people get sucked into the late stages of a bull market. We all have heard the key to investing – “buy low, sell high.” Unfortunately, our brains typically trick us into forgetting this wisdom.
Just when I commented how the market had seemed to settle down (by not making 1%+ daily/hourly moves) volatility returned once again on Tuesday. Following the parabolic move that began last September, these sort of swings should be expected. That doesn’t make them any more comfortable.
From a
85% of Wall Street Banks expect the S&P 500 to end higher in 2018. The S&P 500 was up every month in 2017 (first time ever). It has been up 14 consecutive months (also the first time ever). It has not had a 3% correction in
Buy low, sell high
This is probably the most easily recalled market cliche. It’s easy to say, but our own behavioral biases prevent us from actually following that advice. Market history and our own experience tells us most investors believe it is ok to buy high because
