The New York Stock Exchange dropped over 1,000 points yesterday, which brought out all the naysayers who are predicting economic gloom and doom… tied to the Trump administration of course.
The markets have all been rising steadily for over a year based on a positive economic outlook under President Trump’s leadership. If anyone has any knowledge of stocks and the markets know that you can’t have a sustained period of increases without having a sell off at some point.
This is basically how the rich get richer in this country… they watch their stocks rise in value and when they get that itch they sell and take their profits. The casual investor who got into the market while the prices were going up and are usually getting in way too late see the value dropping and end up panicking and bail out after they have lost money. Stock prices stabilize and the heavy investors those with plenty of money start buying again at bargain prices and the whole cycle starts all over again.
Those who buy in and stay in usually do okay in the long run. Unfortunately those who think they can ride the highs, but sell in a panic when prices are low are the ones fueling the profits of those who have the ability to buy and sell at the right time. The rich get richer while those who gamble with their lifetime savings tend to end up the losers. It’s basically why they stay poor and there isn’t a liberal or socialist program that will change any of it.