Best January for Stocks in 30-YearsSubmitted by O'Grady Financial Group on February 1st, 2019
Just in case you’re weren’t paying attention to the stock market in January…and why would you be…especially since I tell you not to…because I believe no one day, week, month, quarter, or even year…will have lasting impact on your life long investing career.
But when there’s good news…positive news…there’s nothing wrong with a little update. Because you’re not going to get a lot of positive news from most media outlets.
Here it is…stocks had their best January performance in 30-years. The Dow Jones Industrial Average was up 7.2% in January…its best January since 1989. The Dow is the one most folks refer to when talking about “The Market”. It’s the one the talking heads harp on.
The broader market, as measured by the S&P 500, was up nearly 8%…its best January performance since 1987.
Are you glad you didn’t bail on Christmas Eve when the world was ending and the market fell almost 3%. You didn’t even think about, did you. Well, how could you not. We’re human…with human emotions. But your discipline took over. And you don’t react to the “Crisis du Jour”.
So today, you’re not taking rank with those poor souls who sold their funds in a Christmas panic. And are now buying them back at a higher price…implementing the perfect Reverse Grandpa…selling low…buying high.
Of course, what the market did in January is no indicator of what it will do in February or the rest of the year for that matter. Because it doesn’t matter. You, me…we’re investors, not traders or speculators. No economic forecasting or market timing…we’re focused on long term goals. We’re driven by plans. If the plan doesn’t change…the portfolio doesn’t change.
Now go get your candy and roses ready…because St. Valentine is breathing down my neck. And St. Patrick is waiting in the green room.
The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.