SOUTHFIELD, Mich. – The day started with war spreading across Ukraine, Wall Street running for the hills, and yet somehow, during the day, the bulls rampage, and by the end of the day, the market stormed back.
The Dow Jones industrials were off more than 800 points. The Standard and Poor’s 500 were off 69 points, and the tech-heavy Nasdaq was down nearly 500 points.
By noontime, things had calmed down a bit.
The Dow recovered about 250 points. The Standard and Poor’s 500 and Nasdaq are also in the plus column.
By 2 p.m., the Dow took losses, but then all three indices came roaring back by the 4 p.m. close. The Dow is up 92 points, recovering 800 points and adding nearly 100 more.
The Standard and Poor’s 500 are up 63 points and the Nasdaq up 436 points. And sadly, because of all the uncertainty, this kind of volatility is likely to continue.
In the end, this also drives home the lesson of market timing as it is impossible. But proper diversification for your 401k or IRA is vital. You need to check it at least once a year.
If your holdings are not doing well, it’s better to re-balance and move money around to your best advantage. Many stocks are doing well. You might want to look into sectors like energy right now. It’s not a zero-sum game. Going entirely out of the market may not be the best bet.
