Over the past few weeks, I have focused on why it is important to stick with your investment plan and why I believe the markets will have a much better second half of the year.
A key point to remember is that it is time in the market, not timing the market that has historically worked.
Today, I want to focus on what the end of a sell off looks like. Usually it occurs once most people on tv concede that we are all doomed.
After unrelenting selling the .VIX index (volatility) begins to hit the mid to upper 30’s. This morning the .VIX is at 34.21 as I write this.
Just when you think we are do for some relief, the futures are down again…way down.
This is where we are this morning. Is the market going to bottom today? Nobody knows for sure, but when it does eventually bottom it usually looks like a morning such as this one and the markets will open very low and get worse as the morning goes on only to begin a turnaround by late morning and going positive by mid afternoon.
Just remember the darkest point of the night is just before dawn. Unfortunately, we don't have a clock to tell us where we are in the selloff. However, history has proven that those who stuck with their investment plans have been rewarded in time.
Keep the faith!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.