With all the scare mongering these days, I’m surprised to not have seen an article about the negative effects a solar eclipse has on the stock market. Has anyone even done the research? What if stock traders get spooked from inside their windowless room on the floor of the New York Stock Exchange? What if little old ladies and their dividend paying stocks worry eclipses erase dividends? What if everyone ruins their iPhone cameras taking pictures of the eclipse? (Actually, that might boost Apple stock when they get a big boost in iPhones sales and repair revenues.)
Actually, a story like that is the worst kind of stock market prediction story, because it has a fixed event date. After today, you would have to take your lumps if you were wrong instead of just waiting to slowly, eventually become right, like all of the current, market top doomsday projectors are doing.
Of course, an actual prediction with an actual date, would be infinitely more valuable. So, why doesn’t anyone do it?
The same reason as always. It actually is impossible to time the markets.
Trends come, and trends go, but knowing what will happen today, tomorrow, next week, next month, or even next year is basically a guess, and a sucker’s bet.
Is a market top coming? Yes.
Is a market correction coming? Yes.
See? I can do it too.
WHEN are those things going to happen?
I don’t know, and neither do all of those so called experts out there making their market predictions.
So, go outside. Check out that eclipse. Have some fun with the missing sun in the sky, and then go back to ignoring your long-term portfolios, and your retirement accounts until it is time to rebalance. That’s what long-term investing and diversification are for.