Last Monday was a scare for so many investors. And in truth, I was closely watching the developments tend throughout the morning and afternoon. We opened down around 300 points, and selling increased as we progressed through the day. But sometime after lunch, it seemed as though the most likely scenario would be to finish down around 900-1,000 points.
That opened up the possibility of a bounce and recovery on Tuesday. At the same time, there have been some sell signals that couldn’t be ignored. As we neared the end of trading on Tuesday, it was apparent that the former would most likely override the latter.
We have small amounts of uninvited cash, and our stock portfolios continue to increase in price. It was tempting, although maybe not prudent, to invest that cash Tuesday morning when the market was up around 350 points. But the truth of the matter is that it is very dangerous to add to or create new positions until things settle down and clear up.
Although the Covid delta variant has triggered a couple of market over-reactions, it’s clear that the market has shrugged it off as little more than a bad case of the flu. So it appears that it will take some other event to derail the markets upward progress.