Posted by kdadmin on August 27th, 2015.
And so it was …
The market crash of August, 2015, came and went because the GDP was better and the Fed said that raising the interest rate in September “seemed less compelling.” But, at 2pm eastern, the market crash came back; luckily Apple then said it sold a bunch of iWatches, and then every large cap index and ETF went back up because they’re all heavily invested in the largest of the large cap stocks in the USA.
Sounds like a bunch of self-serving baloney to me …
As in, “Hey, we’re going to spew a bunch of rhetoric, that may or may not be rooted in fact (we’re not telling), so that the market can get its hopes up, or not, whatever.” But it worked. At least, for now. Look at the graph above. (The market is represented by SPY, an ETF that tracks the S&P500.) Follow along below:
Maybe I’m old-fashioned. But I, for one, prefer NOT to base my investment decisions on a bunch of rhetoric. Let’s see what the real minutes are after the Fed meeting in September. Remember, the S&P 500 is still down for the year, and though it looks better than it did a few days ago, the market is still seven percent off its very recent high. For a history lesson, start here.
There’s an old adage in the stock market, “Buy the rumor, sell the news.” But tell me, do you really want your life savings bet on a rumor?
p.s. If you’re still heavy into the equity (stock side) of the market, this stock market bounce is your lifeline. I suggest you click the button below to “phone a friend.”