I woke up this morning to the sound of an uneasy market. As an investor, days like this can bring a lot of anxiety or a lot of opportunity, depending on how you look at it. On one hand, my email inbox was filled with reports and updates about the US stocks trading lower. But on the other hand, my cup of coffee steamed in hand, I reminded myself that markets ebb and flow. Ups and downs are all part of the journey.
Highlighted in the headlines today, the Dow Jones index fell by over 200 points, trading at 37,384.20, a decrease of 0.56% on Tuesday. The NASDAQ followed suit, dropping 0.69% to 14,869.02, and the S&P 500 couldn’t resist, falling as well by 0.53% to 4,758.60. Yes, ominous I agree, but it’s not all doom and gloom, lest we forget that communication services shares actually jumped by a whopping 0.3%. Surprise, surprise.
Down, But Not Out
When a report comes in showing that stocks are falling, it’s easy to let panic creep in. But what does it actually mean when we say that the Dow Jones or NASDAQ fell by 0.56% or 0.69%? Simply put, these percentages represent a decrease in the value of all the stocks combined in each index.
Let’s say you own a piece of the pie in the Dow Jones index. A fall of 0.56% means that the value of your piece of the pie has decreased by 0.56%. In terms of dollars and cents, if you had $1,000 invested, it would now be worth about $994.40 – a loss of $5.60 for the day.
The Companies Behind The Curtain
In these moments, it’s also crucial to look behind the curtain and understand the companies driving these market movements. Goldman Sachs, a well-known investment banking firm, reported better-than-expected earnings for its fourth quarter. The bank’s fourth-quarter earnings surpassed consensus expectations, earning $5.48 per share compared to an expected $3.43. But that’s not all – with a booming revenue of $11.32 billion for the fourth quarter of 2023, it was up by 7% year on year.
Now, let’s look at the companies making waves in share prices- Elevai Labs and Phunware, Inc. saw their shares skyrocket. Elevai’s stocks surged by an incredible 102% after they signed an exclusive manufacturing and license agreement with INmune Bio. Phunware saw a healthy boost as well, with shares jumping up 80%.
Investing Mindset: It’s Not Always About the Money
Reading reports like these and feeling the ensuing emotional roller-coaster can be anxiety-inducing. But the thing about these reports is that they don’t tell the full story. Markets are fluid and are constantly in motion, influenced by a myriad of factors both within and outside of the financial world. The ebb and flow are part of the journey of investment.
As seasoned investors, we must remember that a single day of drops doesn’t mean a long-term disaster. We need to look at our investments with a broader perspective, considering the long-term trends and historical performance.
Days like this remind us not to panic, but to pause. To take a deep breath, step back, and remember why we embarked on this journey in the first place. Because at the end of the day, investing isn’t just about the money or the ups and downs. It’s about growing, learning, adapting, and ultimately, enriching our lives.
