Volatility…Your Friend or Foe?

When volatility raises its ugly head (Cough! Last Week, Cough! Cough!) it helps to determine whether it’s your friend or foe.

And one of the biggest flaws about “Watching the Market” comes from looking at the closing numbers of the varied indexes.

Last week was a classic example.

Look at how the indexes performed:

1. The DOW closed at 32,900 down from 32,995 on Monday -0.00287%
2. The S&P closed at 4,123 down from 4,134 on Monday -0.00266%
3. The NASDAQ closed at 12,144 down from 12,387 on Monday -0.0196%

On the surface, it looked like a quiet week.

LOL!

However, the violence of the indexes rising and falling was enough to make your nose bleed.

And, suffice it to say, there was a lot of “blood on the streets” last week.

Volatility…Friend or Foe

Ironically (or NOT) the boyz in the “Club” love days/weeks like this.

Why?

It’s where they make fortunes at your expense.

Unfortunately, most people forget what happened in February 2020, where the markets (DOW) began its horrific descent of over 4,000 points in one week.

Back then we wrote:

Ironically (or NOT) they (Presstitutes) were crying over the loss of 4,000 points last week calling it the greatest loss in history.

Of course, they only tell you partial truths…And they do it in order to give the doom porn freaks a cheap thrill.

Let me explain.

The 4,000 point drop last week was the most points lost in one week’s time.  However, it only represented a 14% decline in real terms.

Compare that to October 19, 1987 when the DOW lost a mere 508 points in one day.  However, the 508 points was equal to a 22% loss in one day.

We mention this to remind you that you can’t – and shouldn’t – believe what the financial whores say about how great or terrible the markets are.

You can, however, believe that Volatility is coming back with a vengeance.

And last week’s action is just a warm-up act.

Depending on your perspective, volatility will either wreak havoc on your investments or present you with the opportunity of your lifetime.

It’s your choice to make.

Make Volatility Your Friend…or Foe

So, be sure to read our May edition of “…In Plain English” to learn how to make volatility your friend and NOT your foe (HERE).

Share this with a friend…especially if they freak out over wild market swings.

They’ll thank YOU later.

At FinancialsMatter We’re Not Just About Finance.

We simply use finance to give you hope.

https://www.financialsmatter.com/category/in-plain-english/

And we’re also Apocaloptimists.

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