Friends
Yesterday’s relief rally didn’t carry over this morning which emboldened the bears. Worries that big tech earnings (Microsoft and Google after the close today, Apple and Amazon later in the week) could disappoint as did Netflix last week is sending shivers through the equity markets. It’s a difficult moment in time for the bulls given the headwinds that continue to strengthen, but for long-term investors and especially those who are in the accumulation phase of their lives, these are the moments that provide opportunity to buy equities while prices are dropping instead of rising. As a wise investor once said, you make most of your money during a bear market, you just don’t realize it at the time.
As for today, by the close the Dow Jones Industrial Average was down 809 points to finish the day at 33,240. The S&P 500 was down 120 points to close at 4,175. Nasdaq was down 514 points (almost 4%) to close at 12,490. Gold was up $5 to trade at $1,901 per ounce, while oil was up $3.54 to trade at $102.08 per barrel WTI.
We are once again, as we were in February, back in bear market territory for some of the market averages. We will be watching to see how the mega cap growth stocks are repriced after their earnings. Stay tuned and stay buckled up. The ride is a bit treacherous at the moment.
Have a nice evening everyone.
Jim
