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Reviewing this summers stock market |
Mark Meyerowitz,Owner,
Meyerowitz Investment Management
Mr. Meyerowitz has been investing since high
school, in the 1970s.
After graduating from Brandeis University in 1977; Mark built up his small family business into a large local retailing company.
From the mid 1990s to early 2003, Mark was a broker with Smith Barney and with Edward Jones; two of the largest invest firms in the nation.
Mark and his family have lived in West Orange, NJ since 1987.
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 So
far, 2007 has been a dramatic year for investors. In spring,
we got rich, in summer we gave most of it back. It it easy
to be happy when you are making money, but it is hard to keep
your composure when stocks are falling hard and fast.
When the market undergoes a steep correction, we need to keep
our emotions in check. To do that, I recommend taking a long
term look at popular indices in order to see where the market
really stands. Another good idea is to shut off the news.
News organizations make sure that the news is always negative,
even in good times. Negative sells better than positive. So
shut off the news.
Take a look at the accompanying 5 year price chart of the
popular S&P 500 index. This index is composed of the 500 largest
companies in America. I've added a channel to easily show
the uptrend of the past five years.
The channel also represents
the "normal" parameters of trading. Sometimes the market goes
above the normal parameters and is pulled back, other times
it goes below the normal parameters and rises back up. You
can see that the market was too high above the channel this
spring, and now has returned to its normal uptrend channel.
Naturally the return to normalcy is not fun, but we are much
better off with a solid, long term up-trending market than
a runaway market like the technology market of the late 1990's.
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