Again: Don’t Panic!

If you follow my YouTube channel, you’ve likely seen the video I posted over the weekend urging people not to panic over the downturn in the stock market.

Today the Dow continued the selloff, closing at 24,345.75, down 1,175.21 points.

And I’m telling you – still – DO NOT PANIC.

Now, the media would have you believe that today is the biggest down day in the history of the stock market.  At the time I am writing this, in fact, CNBC has preempted its regular programming to air a special live broadcast titled “Markets in Turmoil”.

In terms of total points or absolute dollar amount, today is yes, indeed, the “biggest down day”.  The Dow, however, has been at an all-time high – so obviously, periodic declines are going to be larger.  That’s simple math!

The percentage is the figure that matters here.  The Dow was down today by 4.60%, which is far below the top 20 percentage declines in history.  (The biggest was October 19, 1987 – commonly known as Black Monday – when the Dow closed at 1,738.34, down by 508 points and 22.61%.)

Again, this is very simple math to understand.

So, Janes and Joes, I implore you…please don’t react to the media hype!  You know and I know that the media’s job is to sensationalize every event that happens and make mountains out of molehills.

Look, I’m not saying that these selloffs should be ignored…but I’m telling you, the worst thing you can do is to react in panic to the headlines in the media.

If you are currently holding a position in any stock, keep holding.  

The Dow will continue to rise.  Take a look at this chart that shows how it’s risen over history, through every type of tumultuous event imaginable.

As always, I welcome and encourage your thoughts in the comments!  Please also follow me on Facebook, Twitter, Instagram, and YouTube, and check out my ebook, The Stock Market is for Everyone, on Amazon and Smashwords.

Until next time!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

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The $500 Fortune, Part 2

Yesterday, I listed some stocks that, had you invested $500 in them years back and held, would have increased your wealth exponentially.  Of course, I was then asked, “What stocks can I do that with today?”  Here is a list of five that I like:

  1. Tencent: In case you didn’t know this, China is the most populous country in the world.  They will soon have a middle class that consists of 500 million people.  It makes a great deal of sense to have some exposure to China in your investment portfolio, and one of the best ways – if not THE best way – is thru owning shares of the largest video gaming company in the world!  Tencent is already a big company, worth half a trillion dollars.  I think that it has the possibility to one day be worth multiple trillions of dollars.  I firmly believe that this company can make you rich!
  2. The Trade Desk is a small digital advertising company with a market value of $1.4 billion.  Trade Desk uses artificial intelligence (AI) to aggregate and analyze data from different websites in order to help companies improve their marketing.
  3. Match: My selection of Match.com may surprise some people…however, did you know that Match owns Tinder, OKCupid, and Plentyoffish?  Tinder is the third highest grossing app in Apple’s App Store, behind Pandora and Netflix.  The truth of the matter is online dating has been a huge trend and will continue in the future.
  4. Activision Blizzard: It may be hard for non-gamers to believe this, but the gaming industry is HUMONGOUS.  One of the major players is Activision Blizzard.  Although the company has been one of the best investments over the last 20 years, the next 20 years look absolutely just as bright!  Esports, which are organized video game tournaments, are on track to be an absolutely colossal moneymaker for Activision Blizzard.
  5. Roku is a small company with a market value of under a billion dollars.  Roku is the fastest growing streaming platform in the United States.  Streaming video on demand is obviously the direction the world is moving toward, as evidenced by the phenomenal success of Netflix.  Roku has the platform that could eventually make it the dominant streaming video company.

If you’re just getting started or you’re looking to add to your portfolio, these five companies are ones you may want to watch!

If you haven’t checked out my ebook yet, head over to Amazon.  And please, please, share your thoughts and questions in the comments!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)