Get In and Stay In Already!

Yesterday, the market rallied on the strength of a jobs report that exceeded expectations.

The Labor Department said that the US economy added 317,000 new jobs in the month of December; the expectation was for 176,000 jobs.

In addition, Federal Reserve Chairman Jerome Powell said that the Fed will exercise patience in raising interest rates.

This combination of good news sent the Dow up 3.29%, the S&P 500 up 3.43%, and the Nasdaq up 4.26%.

Now, I don’t know if this rally will continue but I do know that trying to time the stock market by jumping in and out will not work…this is just another great example of why!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

How Long Should I Hold A Stock?

Good morning!

One of the questions I am often asked by prospective investors is how long they should hold onto a stock, or stocks.

If you plan on investing money in the stock market, you have to be willing to commit capital for a minimum of three to five years.

That means any money you invest today should be considered untouchable for at least three to five years. Preferably five.

If you want to know why, take a look at the last 90 days.

Over the past three months, my personal account has gone down 42%.  It took me years to earn what I’ve given back these last 90 days.

However, that’s the stock market.

And that’s why you have to leave your money alone for a considerable amount of time, and let time do its thing.

Fidelity Investments did a study a few years ago in which they discovered that the performance of actively traded accounts underperformed accounts with little or no activity.  Some of these inactive accounts were held by people that had passed away!

Think about what this means!  The stocks were held for years and years, throughout market fluctuation after market fluctuation.  And these accounts ended up outperforming those in which the accountholders kept on trading.

That is a testament to letting your money work over time!

So to reiterate:

Invest with the intent not to touch the money for three to five years, preferably five.  Buy good companies, leave your holdings alone, and let time take its course!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

Are You Ready For The Market?

For me, the first day of trading at the start of a new year is like the first day of football season if you’re a football fan.

I’m so excited to see what the year will bring…because unlike in professional sports, the outcome of the stock market in a new year is unpredictable.

Not knowing what’s going to happen is one of the things I love about the stock market!

Stock prices are significantly lower than they were last year at this time, so if you haven’t gotten in the market yet, now may be a great time!

Remember, investing in the stock market is the best way to build long term wealth for you and your family.

I look forward to a great 2019 here at Wealthy Joe!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

What Happened In The Market Today?

If you haven’t already heard, the stock market had a massive rally today.

The Dow was up over 1000 points, which is the biggest one-day gain in history.

The S&P 500: up 4.96%.  NASDAQ: up 5.84%.

What was the reason for the move higher?

It was something called an oversold bounce.  When stocks go down at a fast rate, as they have over the last three months, they become oversold, and will rally in the way we’ve seen today.

Will this move last?  Unfortunately my answer is no, in the short term.  I’ve been watching the market since 1995; right now, we are still in a down trend.  Rallies like this almost never last, but they are part of the process.

I’m not trying to discourage anyone – far from it! –  but I want you to understand that the sell-offs are not over.

Now…if Trump announces that the trade war with China has been settled, all bets are off!

However, expect more selling in the immediate future.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *