“By failing to prepare, you are preparing to fail.” – Benjamin Franklin
Since President Trump came into office, the stock market just seemed to be unable to go down. We have seen marijuana stocks shoot up, the Dow hit the 24,000 mark, cryptocurrencies hit new highs, and an AMAZING album by Bruno Mars. What could go wrong?
Well, a lot.
We have all been told that ‘all good things must come to an end’. In the case of the market, ‘all things must come back to reality’.
Anyone and everyone has brought up the stock market, but more specifically ‘weed stocks’. Most of them have no idea how to even set up an account to invest in stocks but they want to know what stocks to invest in! Ludicrous!
Companies who aren’t making any real profits are shooting up in stock price for cosmetic reasons and speculations…
Now, the market has realized that it is time to weed out (no pun intended) the weak by dropping its points daily. Novice investors will not take it lightly when their shares continually become less valuable than how much they were when they first bought them.
This is where experience and calm temperament come into play. The Dow has been dropping, but it could potentially drop another 5 percent, or more. Anything is possible when a correction is taking place. This does not mean that you should run away. Rather, you may take some profits, if any, or, purchase more shares if you are a long-term player. Speculators get scared when the market declines. The market as of late has been the only place to go for decent returns on your money. A slight correction like what has happened moves the speculators out of the market and makes room for the real investors to come in and buy shares at discount.
If you could buy a brand new Ferrari at the dealership for $250,000 or go down the street and buy it from a guy desperate to get his angry wife off his back for $5,000, which would you pick?
Anchor your boat, prepare for the rocky waves, and catch all the fish that other fishermen are abandoning to get back to shore. You will come out on top. Just make sure you are grabbing healthy fish and not diseased ones.
So to answer the question as to whether or not a stock market crash is on the way, I say, WHO CARES?
Until next time,
Live Long and Prosperous.
Value Investing Millennial Jahnome McEwan provides FIFTY tips for Young Adults looking to build wealth from now. If working a 9-5 until retirement twists your stomach, Jahnome has a way to get you out of it!
Click here if you are interested in learning how!
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