The second quarter just ended—and the markets did very well.
As you know, the first quarter was a time of financial panic—the markets crashed hard. Many people in that moment of panic took money out of the markets.
Well, they missed one of the greatest recoveries in decades. The Dow Jones roared back, returning almost 18 percent, the best performance since 1987. The S&P returned almost 20 percent in one quarter, the best since 1998. And the tech-heavy NASDAQ beat a 30 percent return, the best since 1999. Smaller companies tended to do even better than the big ones in these large-company-heavy celebrity indices.
The bottom line: panic is not your friend. The other bottom line is that betting against the US economy is usually a bad move. I’m not telling you how to invest. I am telling you how not to invest. No-no number one is not to be controlled by your emotions.Read More »