DJI: 1,175 point loss in one day, and what to do from here
First off, I'll say what I did during this huge correction from the Dow Jones. After it started to falter after breaking 26,000, I started to get nervous, and was ready to pull out. I just had one holding at the time, AIEQ. If I hadn't had so much faith in Watson, I would've got out earlier than I did (Friday morning), but I soon realized my faith was misplaced once Watson failed to outperform the broader market. I managed to keep my losses fairly low.
Now to my thoughts on the DJI. I don't think it will continue to drop that much further, but I do think panic will drive it down a bit more. I don't see this as a bubble, it didn't go up because of overconfidence (but it went as high as it because so), it went up because of successful earnings reports, tax cuts, increase in jobs, among other things. For this reason, I don't think it will fall very far, as there is real value (as opposed to Bitcoin for example).
Let this be a lesson to those traders like myself who have only ever traded in the Trump economy; it's not invisible.
Now to my thoughts on the DJI. I don't think it will continue to drop that much further, but I do think panic will drive it down a bit more. I don't see this as a bubble, it didn't go up because of overconfidence (but it went as high as it because so), it went up because of successful earnings reports, tax cuts, increase in jobs, among other things. For this reason, I don't think it will fall very far, as there is real value (as opposed to Bitcoin for example).
Let this be a lesson to those traders like myself who have only ever traded in the Trump economy; it's not invisible.
Комментарий:
Seems to have found bottom right around 23,400 as I predicted. Hopefully we're on the way up now. I don't expect another 500+ point panic.