What a roller coaster ride!

Boy have the markets been exciting lately!

After reaching a new intraday high of 14,121.04 on July 19th, the Dow Jones Industrial Average has plunged to an intraday low of 13,041.77 (a negative 7.6% return) on August 1st, and then hit an intraday high of 13,769.63 today (up 5.6%). That’s quite a round trip in 20 days!

In the same time, bond yields, too, have plunged and then recovered to some degree. All this volume and price movement must be making some traders and brokers happy…

What does it all mean? I’m not going to act like I know, but I do know that market moves like this represent opportunity.

Sure enough, I took the opportunity to purchase a Real Estate Investment Trust for my income clients on August 1st. It was yielding almost 10% at that point and its price has already recovered 9.6% since I bought.

I don’t see this as a chance to brag, because I know very well its price could plunge before I have a chance to publish this post. What I do want to highlight is the golden opportunity found in market volatility.

While some people panic, cooler heads find opportunities. It’s not my area of specialty, but I guarantee you that some distressed debt gurus are out there picking up securities on the cheap that will pay them handsomely over time.

Market volatility equals market opportunity. Instead of panicking, go shopping instead.

Nothing in this blog should be considered investment, financial, tax, or legal advice. The opinions, estimates and projections contained herein are subject to change without notice. Information throughout this blog has been obtained from sources believed to be accurate and reliable, but such accuracy cannot be guaranteed.

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