One Day Up, Next Day Down…Trying to Find a Direction

Today was a bad day in the market. The Dow Jones Industrial Average dropped 1,164 points, which is 3.6%. The Nasdaq Composite index dropped 4.7%. These are some of the biggest daily drops since June of 2020. By contrast, the Dow surged 2.8%, while the Nasdaq rose 3.2% only 14-days ago, on May 4th.

To say the markets have been volatile and unpredictable, is an understatement. Take 3-company names you know well: Target Corporation, Walmart, and Amazon.  You’d think that those three mega stocks would act as cornerstones that anchor the market with a sort of base that remains stable in times like this. But you would be wrong…as those three stocks were down 24.9%, 6.8%, and 7.1% respectively today.

So my question to you is: Do you double down and invest more, pull it all out and sit in cash, or ride it out with your current diversified allocation that was established for a certain timeline and risk? I have attached an article titled “Is the US Headed for a Recession?” that is based on economic and historical data, not feelings or bias. It provides a big picture perspective that you can use to mix in with other sources of information. Let me know if you’d like to discuss in greater detail at a one-on-one meeting.