21 Jul 2020
Market Metrics: Dow Jones Industrial Average (DJIA)
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The DJIA has rebounded from the March 23rd low to a mini peak of 27,572 on the 8th June 2020 and for the past 6 weeks has been range trading, which means tracking sideways while waiting for Mr Market (an allegory created by Benjamin Graham) to work out which way he wants to go.
Click for chart.
This is normal, financial market asset prices regularly track sideways for short and long periods of time.
The challenge for Mr Market is trying to figure out whether the worst of the economic impact of the COVID-19 Pandemic is behind us or if there is still more to come.
Our role as investors is to patiently wait and see if Mr Market falls back into one of his manic depressive moods and if he does, to then take advantage of him again by buying more quality assets at discounted prices.
If you want to find out how you can take advantage of the current situation, please call me on 02 9267 2322.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.