Don’t run from a storm; learn how to harness its power as a tool. That is our approach to the stock market at Northshore Wealth Management. Market volatility is as inevitable as the tides. Study it and learn how to use it to your advantage. Don’t hide under an umbrella when the market is falling. Turn your umbrella upside down and catch it. This philosophy has worked for me for twenty years, and we’ve seen some BIG dips in those decades. Coincidentally, many of those big dips bottomed in the month of March.
In reviewing this snapshot of the last eight months, I can’t help but hope the next eight months look the same. It’s really a best-case scenario. We can see stable growth with plenty of opportunities to buy dips along the way.
At exactly 1:30 p.m. EST today, the market reached a 10% pullback from its peak to trough. As far as sentiment goes, for many retail and institutional investors, this triggered a buying frenzy, which was evident in the following hours. Based on statistical data on how markets perform following a 10% correction, there is a likelihood that this afternoon’s upward trend will continue for days or weeks.
When the sky was falling, our Mainsail Equity Model turned its umbrella upside down and caught some discounted shares with its cash reserves, as planned. It positions itself to harness the power of these inevitable storms.
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