An Investors Dream-World, A Traders Nightmare
August 27, 2015
The headlines in the Wall Street Journal are amazing: “Wild Ride Leaves Investors Gasping”, “Risks Rise in US as World Staggers”, “Chinese Economy is a Black Box”, “The DOW Drops Over 1000 Points”, “Oil Prices Slide”, “Economic Forecasts for Personal Consumption in the US Very Positive”, “Will Biden Run? Drama Creates Dilemma for Obama”
The conflicting headlines and events are creating a nightmare of volatility alternating panic and greed, panic and greed. Traders trying to take advantage of this volatility are creating a self -fulfilling disaster. However, beneath the noise, investors with a Financial Independence Feasibility goal, should see this volatility as a wonderful opportunity to dollar-cost-average. Regular purchases over the next 14 months, before the election, may in hind-sight be seen as the best of times.
Dollar Cost averaging does not assure a profit or protect against a loss in declining markets. Such plans involve continuous investment in securities regardless of fluctuating price levels. Investors should consider their financial ability to continue purchases through periods of low price levels.
Securities offered through The Strategic Financial Alliance, Inc., Member FINRA/SIPC. Advisory Services offered through Lewis Financial Management, LLC which is not affiliated with The Strategic Financial Alliance, Inc.
Past performance may not be indicative of future results. Information presented here should not be considered a recommendation to buy or sell a particular security. Lewis Financial Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. More information about the adviser including its investment strategies and objectives is available upon request. The material presented here is not financial advice.