4. Why you shouldn't care about last week's insanity
Aunt Mary’s “Bangkok” performance for charades was unforgettable… Last week’s markets shouldn’t be. The Dow had one of its biggest drops and biggest jumps ever on a week there was no news. Just know that sometimes markets are unreasonable. Like family. Over the holidays.
Remember February 2018?… No (only Eagles fans do). The same market drop happened, but it's not weighing on your life. Back then, the Dow fell 1,000 points — twice in one week — on rising inflation worries. By the end of February the Dow had pretty much fully recovered. Sometimes markets freak.
The Takeaway: Long-term profits are what matter... What drove last week’s market whiplash could be forgotten. Add a splash of robotic trading algorithms and that makes things even more intense. But what drives companies profits, like market forces and economic growth, is what drives stock prices long-term.