Have you ever noticed how we are less concerned about upside volatility than downside? Well…today was one of those days that proved the point, with the markets closing up significantly higher. Today was also important in that the downside volatility brought the intraday market lows to less than 8,000 on the Dow. In our previous posts and communications we have shared the belief that the market will re-test the mid October lows several times and today was one of those days. Frankly, these days with 10% intraday swings, it can be a little maddening, but to end with an up does feel a bit better than when it is down. It really shouldn’t though. Being a long-term investor has been a winning strategy. These are the type of days one needs to be present and accounted for when focused on long term goals.
Some relevant links:
Economists See No Growth Until 2nd Half of 2009. (Remember stocks often rise DURING the last half of a recession)