Is the Market Really Recovering?
In the last week, the markets have rebounded in a big way. Just when everything was looking like it was going straight down, it started going up again! Confused? I sure am. But that’s the way of the market.
Even though everyone has a prediction, almost no one can accurately predict the future of the markets. And, what typically happens is, just when we get out, it starts going up again. Isn’t that strange! Coincidence? Absolutely not. This happens to most investors. And, this is precisely the reason that 90% of investors lose money.
I’m not going to join the crowd and say that the market is going to continue to go back up, because I cannot predict the future. I will say this: everyone needs to have an investment system that works for them regardless of which way the market goes. They need to know that they can achieve their investment goals. Maybe that means they don’t suffer losses of 50% of their retirement portfolio. When the market turns down, every investor needs a system that protects them from losses that they cannot afford.
So here’s what the market upturn means to you. Regardless of what happens, we need to find a way to make it work for us. Many people who got out of the market weeks or months ago missed the recent jump. And these are the same people who felt massive pain when they saw their portfolio drop a few months ago. Do you see a pattern?
If we are going to have our portfolios rise and fall with the market, we need to make sure that we can deal with the big ups and downs. Many people wait until they’ve lost a lot of money before they decide. So, decide now. Think about what would happen if the stock market goes down 50%, 60%, 70%, 80% or 90%. Because it could happen. The time to prepare is now, not after it’s too late.
Related posts:
- Automated Trading and Economic Turmoil
- Are Computers Smart Enough to Trade in the Stock Market?
- Lie: Only Financial Wizards Can Time The Market
- The Little Book that Beats the Market
- Why Mr. Market Is Depressed
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I'm George Ulmer. Matt and I started this blog and launched the Online Investing AI business. Our goal is to develop the technology to allow anyone to retire after working for 10 years.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
I think we are already out of the recession now, but most people will not realize this until late July 2009. Check out my blog post to see why.