Thursday, February 04, 2010
This morning on CNBC I have heard two references to feeling down because stock prices are dropping today. This is developing into a pet peeve of mine. I've been working in the business in varying capacities since 1984 and I've noticed anecdotally that every so often the stock market goes down. Yes, it is true.
It turns out there is something to my casual observation. Stocks have a down year 28% of the time.
Ok, I'll ease up on the sarcasm and just say that stock declines are a normal part of the process and we are guaranteed, guar on teeed, to have down years and bear markets in the future. We know they are coming but we also know that the market will have more up years than down. That is just how it is.
Do you get emotional about about the sun rising in the morning or setting at night? No because both are guaranteed to occur. It is the same with up and down markets. I just mentioned this a few days ago, having the outcome of your day determined by how stocks do seems like no way to live.