S&P500 - 9.52%
NASDAQ - 12.16%
Dow Jones Industrial Average - 7.87%
As the market makes a remarkable recovery on Wednesday due to news of tariff delays and reductions, many investors are left wondering if the recent dip was an overreaction or a sign of things to come. Is it over? Are we headed for a rally? Are we going to see more red by the end of the week?
Who knows…
It is impossible to predict the market, it is impossible to time the market with absolute certainty, and it is impossible to always find the “bottom”. One thing is for sure - Staying in the market, owning great companies, and investing when fear is at an all time high is how we combat the short-term volatility. Today was one of the best single days in market history, and remember this: If you missed the 10 best days in the market over the last 30 years… Your total returns would be cut in half. If that statistic doesn’t inspire you to stay the course over the long term, then hopefully today helped a bit. With all of that being said, Jean’s prediction of what’s next is as follows: Volatility.
Today’s rally likely won’t sustain, and with rapid developments in international trade as well as the U.S. economy, I expect we see more aggressive ups and downs in the short term. That is all the more reason to stay invested, and see the market downturns as buying opportunities. It seems unlikely that we are out of the woods just yet, and that’s okay. Expect volatility, ignore the noise if you are truly a long-term investor, and you will thank yourself later.
