Being Rosy Again Or Nothing To Write Home About
After weeks of dropping, looks like the stock markets are going back up. Which is a shame really. I was hoping markets would stay down a little longer to give wifey and I more time to buy additional ETFs at a lower cost.
It's okay. We managed to purchase a few ETFs at this lower price range. Not as many as I'd like, but better than nothing.
So what happened?
Heck if I know. After weeks of doom and gloom, it looked like a lot of people were pulling out of stocks and flooding into the bond market. The price of our bond ETF reached an all time high during this crazy time.
Despite our stock market index ETFs dropping behind, the bond ETF was holding the fort. Our last purchase of ETFs didn't require a purchase of additional bond ETFs. That's how strong the bonds were.
Of course as I write this, the TSX, S&P 500, and other stock markets around the world have been on a slight winning streak.
As people were pouring out of the market, businesses released their earnings. Despite all the despair and predictions of imminent horrors, business was good. Companies still made money.
Even though the TSX suffered an official correction, the businesses and companies the TSX represent continued to chug along and operate as usual.
Of course, after hearing all the good news. People are leaving bonds and going back into stocks. Hence, the recent uptrend with the TSX.
If you're a passive investor, like wifey and I, then the recent drop and subsequent rise don't mean anything. Although, if you're like wifey and I, a drop in the stock market would make you salivate and wish you could get your pay cheque sooner to buy more stocks while prices are low. Now that prices are going up again, our most recent investments (ETFs and mutual funds purchased during the last two weeks) are up as a result.
If you're an active investor, then you probably took your money out of the market when the correction was happening. Now that prices have been going up again, you put your money back in. If you think you're a smart investor, you probably haven't put your money back into the market while you wait and see if this rise is only temporary. If you took money out of the market three weeks into the correction, you effectively sold low. If you waited a few days after the rise or haven't even gotten back into the market, then you are effectively buying high.
Sadly, no one can predict when the market goes up or down. If I could do that, I'd be retired already.
When the ebola crisis reach North America, the experts and pundits predicted lower demand for air travel. As a result, airline stocks took a tumble. A few weeks after that prediction, demand has not decreased. People are still taking flights on airlines.
Sure there are the scares when people vomit or cough on a plane, but these are the few incidents among thousands of flights in North America each day. The airlines are still flying and are still making money.
At the end of the day, the recent dip and rise don't mean much if you're a passive investor. Businesses are still making money.
Really, it's nothing to write home about.
It's okay. We managed to purchase a few ETFs at this lower price range. Not as many as I'd like, but better than nothing.
So what happened?
Heck if I know. After weeks of doom and gloom, it looked like a lot of people were pulling out of stocks and flooding into the bond market. The price of our bond ETF reached an all time high during this crazy time.
Despite our stock market index ETFs dropping behind, the bond ETF was holding the fort. Our last purchase of ETFs didn't require a purchase of additional bond ETFs. That's how strong the bonds were.
Of course as I write this, the TSX, S&P 500, and other stock markets around the world have been on a slight winning streak.
As people were pouring out of the market, businesses released their earnings. Despite all the despair and predictions of imminent horrors, business was good. Companies still made money.
Even though the TSX suffered an official correction, the businesses and companies the TSX represent continued to chug along and operate as usual.
Of course, after hearing all the good news. People are leaving bonds and going back into stocks. Hence, the recent uptrend with the TSX.
If you're a passive investor, like wifey and I, then the recent drop and subsequent rise don't mean anything. Although, if you're like wifey and I, a drop in the stock market would make you salivate and wish you could get your pay cheque sooner to buy more stocks while prices are low. Now that prices are going up again, our most recent investments (ETFs and mutual funds purchased during the last two weeks) are up as a result.
If you're an active investor, then you probably took your money out of the market when the correction was happening. Now that prices have been going up again, you put your money back in. If you think you're a smart investor, you probably haven't put your money back into the market while you wait and see if this rise is only temporary. If you took money out of the market three weeks into the correction, you effectively sold low. If you waited a few days after the rise or haven't even gotten back into the market, then you are effectively buying high.
Sadly, no one can predict when the market goes up or down. If I could do that, I'd be retired already.
When the ebola crisis reach North America, the experts and pundits predicted lower demand for air travel. As a result, airline stocks took a tumble. A few weeks after that prediction, demand has not decreased. People are still taking flights on airlines.
Sure there are the scares when people vomit or cough on a plane, but these are the few incidents among thousands of flights in North America each day. The airlines are still flying and are still making money.
At the end of the day, the recent dip and rise don't mean much if you're a passive investor. Businesses are still making money.
Really, it's nothing to write home about.
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