The gauge I received from investors yesterday and today varied greatly. Yesterday the euphoria of getting 100% into aggressive stocks was the mood. Today it was as if they just cancelled Christmas - investors suddenly started to question the rally and are not nervous in regards to have far the market has gone this year.
It should not be surprising to me to see such a dramatic change in the way investors view the market from day to day. But it still amazes me to this day that the investors that change their view from day to day are long-term (and often conservative) investors. That is they are investing for retirement that is at least 10 years away and will not touch the money for at least that long. So tell me, why would you base investment decisions off the day to day moves of the market?
You should not and that is why the majority of individual investors struggle to not only keep up with the S&P 500, but to make any money investing.
Looking ahead, I feel that the market is ahead of itself in the very short-term and a few days of selling is completely normal. That being said, I am not changing my investment strategy. I continue to believe 1500 to 1550 is the target for the S&P 500 in the coming months and I invest accordingly. That would have me buying on dips and looking for opportunities during market weakness.
The bottom line is that today you should not panic because the market did not follow through on the big gains yesterday. You should be preparing your WishList of stocks and ETFs for the next pullback.
Be Proactive NOT Reactive.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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