Stock Prices Falling Is Perfectly Normal
Recognizing that stock prices falling is a regular occurrence that needs no explanation in order to profit from it, is a huge advantage. Think about all the time and energy spent by so many looking for who to blame, instead of spending that time trying to figure out how to profit from it. To make things worse, I see people going out of their way to hear opinions of journalists and economists about why markets are not going up. I kid you not, sometimes people watch tv specials on sunday evenings, instead of spending time with their families, just to hear journalists make up reasons for why stocks are falling, when we all know it's just perfectly normal behavior.
Five minutes of homework will show you very clearly that falling stock prices is just business as usual and needs no explanation. Here is a chart from First Trust showing market returns since 1926. Stocks fall in price. So what?
Forget about why. We want to focus on how we're going to profit. That might seem like common sense, but you'd be surprised at how many people invite more noise into their office or home when in fact, it's the time to be tuning the noise out even more. I don't get humans sometimes. This is one of those occasions.
Let's remember how normal it is for stocks to fall in price. And let's not waste anyone's time trying to make up reasons to justify it. This is just part of the regular process of the market. Let's not pretend it's not.
JC
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