The trend is your friend

It’s hard to believe that the stock market has been trending upward for over 4 years. The S & P 500 bottomed on March 9th of 2009 at 666 (the numerical symbol of the Devil). The index recently hit 1687 which is an increase of 253%, not too bad for 4 years.

As long as the trend is intact you should continue to remain invested, the trend is your friend!

People use trends in order to determine if they should be investing their hard earned capital in the stock market. There are market entry points and they best can be defined as a time when the long term trend of the market is no longer down.

The above charts are weekly charts and don’t give a very good view of the bottoming process. However, you can see very clearly how the trend changes. If you had invested after the down trends had ended you would have done very well. It appears that the two down trends ended rather abruptly, however, a closer look at the daily charts tells a different story.

Both of these market bottoms took time to develop and gave the individual investor plenty of opportunity to jump into the market. I will address market bottom building in a later post.

Most investors rely on their financial adviser to provide them with investment advice. However, most advisers have hundreds of clients and don’t have a process in place to provide timely advice.

What many investors don’t realize is that there are a number of websites that offer the tools needed to track the market and your individual stock holdings. The cost of these services are very minimal and in some cases free. This site is dedicated to helping investors “be their own broker.” Many good recommendations come from the investment community, taking a personal interest in your investments is just common sense!

I hope that you will join me in a journey of discovery. A journey that will ease your anxieties and provide you with a foundation to sound investing.

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