Big Deal Lucille

I don’t comment on market direction, as in picking one. The best lesson I learned in my years of studying chart mumbo jumbo, trading methodologies and so called growth or value investing is that none of it works. I expected doing a lot of research, plotting new strategies and sheer determination would magically result in superior market returns.
Think of it as digging a hole. You’re getting deeper but you’re not finding anything but more dirt. Expending time, energy, and money, only to find more of what you’ve been throwing out of the hole.
Friday, the DJIA was down 2.6%, 366 points.
So what was the big news? 366 points, not 2.6%.
Get a grip.
When I started in business, in 1980, the Dow was hanging out between 870 and 1000. If the Dow had been down 2.6%, it would have been down 26 points.
What’s my point? Points aren’t points. Percentages matter, not points.
Yes, I’m aware the Dow is off 5% from it’s very recent high. The Dow could fall 10%, or in a real ugly stretch, 20%, or more. See that prospect in your mind, feel it. Picture the equity, stock, side of your portfolio down 20%, how would that work for you?
If it raises your heart rate, then you need to have less money in the market. Not because I’m predicting a market decline of any magnitude, I’m not. I’m not predicting a rise of any amount either. I don’t predict.
That’s for television bubbleheads to scare or delight you into watching the next commercial. If your body is telling you the fluctuation is stressing you out, then reduce your market exposure. Why torture yourself?