Headlines, Beware!

January 31, 2017

You might remember a couple of days ago, we suggested it might be a good idea to turn off CNBC and to stop looking at headlines, as the Dow hit 20,000. Avoid getting sucked in to the emotion of it all. Well, here’s why. Read the two headlines closely:

CNBC – January 25, 2017
THE DAY THE MARKET HIT 20,000
Cramer: It’s not too late to get into the market

NOW, THE NEXT DAY:
Abigail Stevenson
CNBC – January 26, 2017
The downside is way too big, and the upside is nil, he said.
Cramer: Here’s what makes Dow 20K so ‘dangerous’

This is the same talking head saying exactly the opposite thing A DAY APART! So, which headline are you to believe? NEITHER! Set your allocations and forget it. Don’t celebrate too much when the market advances and don’t fret too much when the market retreats.