Today the Dow Jones hit 20,000 points for the first time ever. To give you an understanding of how much it has gone up, its lowest point in recent history was on March 9th, 2009 at 6,626.94. Since that day the Dow has risen by 13,419.89 points, more than double its lowest point in 2009. The Dow has increased roughly 1,666 points since Donald Trump’s victory in November.
Yes, this is a historical day showing the increased confidence of the average investor in the economy. A bull Market! What is a Bull Market? It is when share prices are rising in the stock market and investors are buying. The opposite of this would be a Bear Market. A Bear Market is when share prices fall and investors start to sell (For more definitions, check out our post, the Startup Dictionary).
How has it gone so far up, breaking the 20,000 point? It seems as though the White House wants to take all of the credit. Kellyanne Conway certainly thinks it is due to President Trump when she recently tweeting “The Trump Effect.”
I do not know what the real reason is and I do not plan on getting too far into politics. Anyone who personally knows me already knows where I stand. That being said, I know for sure that the only way the Dow would go up is if people are confidently buying.
What am I doing now that the Dow is at its record high? My strategy has always been to buy low and sell high. Therefore, I have been selling portions of my portfolio over the last week. That puts me against the grain I guess, but here is my reasoning:
The Dow is at the highest point it has EVER been. I am not sure where it will go from here as I do not have a crystal ball, but my thought is, what goes up must eventually come back down. This is why I started selling portions of my winning stocks.
What do you guys think about the Dow hitting its record high? Are you buying? Selling? Waiting and watching? Let us know in the comment section below!
Disclosure: The article above should not be used to make stock decisions. These are my thoughts and opinions and I can be wrong! Do your own homework and make your decisions based on research and facts, always.
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