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Chuck Jaffe: How To Keep This Crazy Stock Market From Driving You Nuts: David Snowball Comments
Jaffe says: " My favorite statistic showing why such criticism is necessary comes from David Snowball of MutualFundObserver.com, who in his September commentary noted that the term he sees being used most to describe recent market activity has been “bloodbath.” ...
“By Google’s count,” Snowball noted, “rather more than 64,000 market bloodbaths in the media.” ---
This is true. The hype seems excessive relative to the market. My last glance showed the Dow down a bit under 10% YTD and the S&P down less than 7%. Those are mere "drops in the bucket" in terms of normal market swings.
I'm not as sanguine, however, on the commodities front. Something very unusual seems to be going on there. And it seems quite broad-based. I'm not expecting anyone to weap for those of us who keep a foot in that sector. However, to the extent it may be a harbinger of more serious economic problems, it should be a bit concerning to everyone.
Find an allocation that meets your risk tolerance and long-term goals, keep cash needed from the portfolio in the next 5 years in CDs, cash or short-term bonds, then turn off the financial channels & don't listen to talk radio (both of which are a waste of time that could be spent doing something positive). And remember that the vast majority of people have NO money to worry about.
BobC you are absolutely correct. I especially like your last comment. While many obsess about a 1-2% slump in the DOW or S&P, or if they are properly allocated, diversified and sector selected the vast majority are just trying to get through the day. Back to fortifying the igloo. Winter's coming.
@little5bee- You'll find that BobC doesn't post all that often but when he does it's well worth a read. He's one of the old wise men of MFO. (Sorry about the "old", Bob.)
I have always considered Bob C the E.F. Hutton of the board. When he talks, people listen. He is always the voice of reason in a sometimes unreasonable market
I have always considered Bob C the E.F. Hutton of the board. When he talks, people listen. He is always the voice of reason in a sometimes unreasonable market
Yes - Actually he's being "too reasonable" in this thread. Turn off my daily Bloomberg?
Maybe after you take away my morning coffee and evening vino first!
Perhaps we here are already at the, a little bit "nuts" stage, to be investors and discussing this fine "art" form at a magical electronic interface with global connections.
I used to have a similar amount of fun falling into the 8 foot wide creek that flowed behind my childhood home of many years.
Comments
“By Google’s count,” Snowball noted, “rather more than 64,000 market bloodbaths in the media.”
---
This is true. The hype seems excessive relative to the market. My last glance showed the Dow down a bit under 10% YTD and the S&P down less than 7%. Those are mere "drops in the bucket" in terms of normal market swings.
I'm not as sanguine, however, on the commodities front. Something very unusual seems to be going on there. And it seems quite broad-based. I'm not expecting anyone to weap for those of us who keep a foot in that sector. However, to the extent it may be a harbinger of more serious economic problems, it should be a bit concerning to everyone.
I liked this analysis, too. Puts things in their proper perspective!
Regards,
Ted
http://pdsplanning.com/our-story/our-team/
Maybe after you take away my morning coffee and evening vino first!
I used to have a similar amount of fun falling into the 8 foot wide creek that flowed behind my childhood home of many years.
Take care.