If you have money in the stock market, October has been an even more frightening Halloween month than usual, with the Dow swinging wildly enough to induce nausea like the camera work in “The Blair Witch Project.” But experts advise to stop watching and go sit it out until it blows over.
Dan Celia is president and CEO of Financial Issues Stewardship Ministries and host of the popular radio show, “Financial Issues” (note: he’ll also be my guest on next Saturday’s “Huckabee” on TBN.) He warns that as scary as these market dives are the longterm outlook is good. He notes that if you’d pulled your money out of the market after the meltdown of 2008 and put it in CDs, you would have missed out on the greatest up trend in history.
As for why there is this correction, the causes are mostly temporary: anxiety over the election, Trump’s trade battle with China, or the media trying to talk down the economy or ignore good news for political purposes (remember Bill Maher being honest enough to admit that he was rooting for a recession just to hurt Trump?) But the underlying fundamentals (employment, productivity, consumer and business confidence, GDP growth, etc.) are the strongest in at least 15 years. Celia says it's a good sign that the market is being driven by the economy not by central bank meddling or government intervention.
The real impediment to a rally is the possibility of Democrats winning back the House next week. Mike Novogratz of Galaxy Investment Partners predicted the recent drop in stocks, and he warns, “You’ve had the Trump train going for a while, he’s had both the House and Senate. And if you have a Democrat House, it’s just going to be noise and noise and noise. The Trump agenda gets muted some.”
So the best thing you can do to protect your investments (as well as your job and your paycheck and national security) is to go to the polls and vote to ensure that the policies that created those strong fundamentals aren’t reversed with high taxes, increased regulation, and pointless investigations and impeachment hearings tying the hands of the people whom you sent to DC to clean out the donkey stable and get the economy back on track.
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