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If the Mainstream Has You Running Scared, Stop and Read This

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We’re about to ask you a question. So get ready.

 

No cheating. Get a pen or a pencil and a piece of paper (we assume you still have these in the ‘digital age’).

 

You have to write the first thing that comes to your mind.

 

Let’s go.

 

Question 1: How much has the Australian stock market dropped this year?

 

Question 2: How much has the Australian stock market dropped over the past five trading days?

 

Got your answers? Great. Let’s see if you’re right…

 

So, what was your answer?

 

We won’t even try to guess.

 

But we do wonder if you realised that the first question was a trick question.

 

The fact is the Aussie market hasn’t dropped this year. It’s up 2.99%. But did you even realise that? Or did you just assume it must be down because of the question and because of all the negative market press?

 

The answer to the second question is that the market has dropped 1.97% over the past five days.

 

That’s not to say the market hasn’t been higher or lower through the course of the year, because it has.

 

The point we’re making is for all the screeching and hollering that you’ve seen from the mainstream press this year, we’d forgive you for thinking the market had fallen 10% this year…when in fact it’s up 2.99%.

 

Small-cap crackers

 

Look, we’ve put our neck on the line with our market predictions for this year.

 

You may have gone even further.

 

If you’ve followed our advice, you’ve put money on the line by investing in stocks. Perhaps you’ve even bought one or more of the stocks recommended in our investment advisories, such as some of the small-cap crackers Tim Dohrmann has recommended.

 

But with the Aussie index falling every day for the past week, you’re probably getting worried.

 

You worry that you’ve made the wrong decision. You think you should have listened to the newspaper reports — the ones that say Europe is about to plunge into war.

 

If war is on the cards, then surely stocks are the last things you want to own.

 

Maybe. Maybe not.

 

Read the rest of this article at Money Morning

 



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