Founded in 1992, Jackson Wealth Management is an independent, fee-only investment advisor. Founder George P. Jackson has been the CEO/CIO of the firm since its inception with the goal of delivering value to his clients and his associates. 

Securities Offered through Triad Advisors, LLC. Member FINRA/SIPC
Advisory services offered through Jackson Wealth Management, LLC. 
Jackson Wealth Management, LLC is an affiliate of Jackson Retirement Planning, Inc.
Jackson Wealth Management, LLC is not affiliated with Triad Advisors, LLC.

755 Primera Boulevard, Suite 1001

Lake Mary, Florida 32746

Buy the Dip?

February 7, 2018

2/7/2018 10:03 AM

 

Dear Friends,

 

Below is a chart of the Dow Jones Industrial Average (DJIA):

  • Green circle – stochastics dropped to oversold, and bounced right off – good sign

  • Blue circle – yesterday the DJIA dropped below, but held onto the support level of 23,900 – good sign

  • Orange circle – yesterday had massive trading volume on an up day – good sign

What to expect?

  • Probably continued volatility

What to do?

  • Nothing, stay the course, that is a decision

  • Dial down, if you are concerned – call our office

  • Buy the dip, if you think stocks are on sale – which is what I did with my own money yesterday morning, call our office

A comment below on investor psychology

Investor psychology

  • When there is a downturn in the market, investors look at their accounts based on their high-water-mark vs. their current value

  • For example, the S&P 500 index is now:

    • -6% off its 52-week high, but

    • +19% above its 52-week low

  • It is common for investors to think, wow, I lost 6% -- they don’t think, wow, I am up +19%

    • Human nature

 

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