The Dow Ends Below 10,000
We all knew it was coming, and today it finally came.
The Dow Jones Industrials has been up and down, riding an interesting roller coaster over the past couple of weeks that saw it drop below 10,000 a couple of times, only to rally back above the mark by the close of the day. Last Friday was the last time the market dropped, only to recover later. Today that didn’t happen, and the Dow ended the day at 9,974.45, dropping about 70 points or .7% on the day. This time, things started out well, then slowly declined.
Once again, world events have impacted the Dow, as the euro continues its slide. Last week I mentioned Germany, but now it seems there are worries coming from Portugal, Italy, Ireland and Spain, and even the United Kingdom seems to be somewhat shaky. Not to mention Microsoft’s message today saying they’re going to reduce marketing and potentially stay away from China because the country won’t enforce their copyright laws & protect Microsoft’s licenses. And China might be the catalyst for the market’s decline because they’re heavily invested in European bonds, and with the market so shaky there they’ve started making overtures that look like they might try to get out from under some of them, hence a little bit of panic.
With all this uncertainty, is it the right time to put your money into the stock market? I asked a broker friend of mine about it and he said yes, but it depends on what it is you’re putting your money into. Putting one’s money into a money market account, where your funds are spread out among a bunch of different types of stocks, is always a good bet because, on average, they end up growing over the course of 5 to 10 years as opposed to suffering drastic losses. However, one still has to be predisposed to be ready to ride it out for the long haul, as one’s money could always potentially stagnate or even decline if there are more losers than growth stocks, as what happened to my portfolio last year.
Prediction for the next two days? Nope, I’m out of the predicting business, because it turns out the only real way one can hope to do it with any real chance of making money or losing very little is to keep watch on it every hour to see what’s going on. By the way, the NASDAQ and S&P were also down, .68% and .57% respectively.