Nasdaq index was up around 7% yesterday thanks to better-than-expected US CPI – consumer price index. It is like precious rain after a long drought. All the investors jump right back in because of fear of missing out. If you lose money during a market crash, you will get yelled at by your client and boss. But if you miss out market bounce back, you will get yelled out twice as hard. That’s why stock market is a leading indicator. 😊
At least one thing is for sure. No one can predict that. I feel very bad for those who just sold their investment the day before this bounce.
There is a popular saying that there are only a few key dates in the long history with such huge shoot up. If you miss one, that is a big loss. That’s why it’s suggested to stay invested and do not make huge and sudden move because we just don’t know when the market will bounce back.
If someone knows for sure, would it be nice if the mid-term election was held after this CPI data release? Or at least predict that before the election? It will certainly help democrats.
Now, many investment pros are predicting whether the rally will continue or not. Some say to sell it now to make a profit because this rally is short-lived. Some say the rally will continue. Both will lay out a lot of data points with very logical reasoning. Who would you believe? 😊
Same logic applies. Stay long, stay in, and diversify since we don’t know for sure.