Did I say that the Dow Jones gave up over 500 points on Monday? Well today it rebounded by ending the day up 410 points. Talk about “irrational exuberance”. What can we learn about the stock market based on the last couple of days? First, we know that news drives the market. The market rebounded today based on news that the government was ready to step in and save the day. Second, no one can call the top or the bottom of the market. So what do we do? If you are investing in the market and you have more than five years until you will be needing your money then just ride it out. When the market goes down consider everything on sale, and when the markets go up, you are reaping the benefits of staying calm.
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