Another week with the S&P 500 dropping 2.17% and the Dow 2.19%. After just first two weeks of the year, S&P is down 8.00% and the Dow is down 8.25%. Both are the worst starts ever to a new year. Concerns about slowing international economic growth, specifically in China is scaring investors out of stocks; lower oil prices is an issue for the energy sector; weak earnings reports shows weak growth here at home. In the near future, prices may hit bottom so that stocks would be valued as a buy, but we’re not there yet.
To be honest, I have mixed emotions about starting off the year with stock selloffs. Economists have been telling people to be 100% cash since mid-December in order word put your money in safe investment. When the market stabilizes, individuals or organizations may have a very good opportunity to buy more shares of DOW, S&P and International stocks to participate in the recovery that follows.
However, for folks who have not moved to cash. They are still bouncing around with the market – and losing money as prices continue to fall.
Of course, the question is whether it is too late to move to cash. Should they just stick it out from here?
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