Most people have heard of back to the future. Well, with the S&P 500 it's now back to the first of the year because as of yesterday's close that's about where we are.
According to Market Watch, The S&P 500 Index has fallen 8% from its September highs, when it topped 2,000 points. We’re now back to where we started at the beginning of the year.
The drop has been fast and furious, with the benchmark index recently posting its worst three-day run since the dark days of 2011 amid the European debt crisis. It recorded its worst session of the year Wednesday
.
Those previous declines proved to be buying opportunities. Since August 2011, the S&P 500 is up almost 80%.
Does that mean that history will repeat itself here and investors will once again start buying this dip or is it a form of equity Armageddon that will cause investors to close their wallets and go home for a long while?
If the answer to that were easy markets would essentially stop being markets and everyone would find his or her way to the Big Rock Candy Mountain of success.
About the only sure thing here is that ain't going to occur anytime soon because in the real world there ain't no Big Rock Candy Mountain. Only winners and losers.
In the meantime, if you have an idea of what's valuable and what you want to own, don't be too shy. And if it will screw up your courage a bit, here's a quote from Warren Buffett he gave a couple of days ago.
“I like buying it as it goes down, and the more it goes down, the more I like to buy,” Buffett told CNBC.
t. man hatter
No comments:
Post a Comment