Friday, November 04, 2016
Executive Summary: There is a lot of garbage investment articles published on the web. Ignore 99% of them.
***The S&P 500 Just Suffered its Longest Losing Streak Since 2008***
That’s the exact headline on a popular investment news site this morning.
Quoting from the article: “The S&P 500 has logged losses eight sessions through Thursday, in only the second time it's done so in the past two decades.”
Wow, that is scary!
But, there is no comparison of the last 8 trading days here in 2016 to the first 8 trading days of October 2008.
Below is a chart of the past 8 trading days, the S&P 500 index is down -2.91% since October 24, when news broke about the FBI continuing their investigation.
This looks to me like a buying opportunity.
Below is a chart of the S&P 500 index down 8 days in a row -22.80% from October 1-10.
To compare today to 2008 when banks were collapsing, mortgages defaulting, recession was in full bloom, and the world seemed to be coming to an end is irresponsible.
Many articles like this increase eyeballs to a website, but they are worthless articles to investors. In fact, they drive fear and emotion and cause many investors to panic and then make poor decisions.
These articles instill FEAR – and FEAR sells. But, these articles are detrimental to investors.