First Person: I Don't Care About the Record Dow

Yahoo Contributor Network

The stock market is rolling and the Dow Jones Industrial Average is reaching record highs . Perhaps it is a bit strong to suggest that I truly do not care about this news. However, it is fair to say that my behavior is not changing as a result of this growth. Clearly the movement of the stock market has a certain impact on everybody. I just find that reactionary actions are potentially unwise. Here are a few reasons that I do not necessarily spend a lot of energy worrying about the record highs.

Destined to fall?

What goes up must come down, right? It is certainly good to be optimistic in many phases of life, but can the stock market grow forever? Clearly not. History tells us that the stock market ebbs and flows over time. As much as people try to predict the movements, I do not believe that anyone can accurately forecast when the market will climb or plummet. Therefore, I am hesitant to assume that the market will keep setting higher and higher records.

Timetables

If anything, I feel like this might actually be a good time to pull money out of market since it is so high. However, the timetable is not right to be completing such transactions. I am not ready to retire or access other types of funds. Therefore, making moves as a result of the market does not fit my plan. For me, investing is not about making impulse decisions. There have been times that I have made quick decisions, but for the most part I never try to time the market.

Investing at the high point

As mentioned, this is not necessarily a time to jump in. What I have in the market will likely stay, but it is rarely a smart decision to invest at the high point. Obviously there are some companies that are not at their peak, but distinguishing those from institutions that are overvalued is very difficult. Analysts and experts can suggest which companies will grow in the future, but in the past I have found these prognostications to be guesses at best.

Paying the bills

Why am I not that invested in the record growth of the market? I have bills to pay and work to do. The record high does not directly increase the size of my paycheck right now, nor make my financial obligations any less. Financial professionals can grapple with what this record high means, but the common person just has to go to work and hope their money will grow appropriately over time.

Maybe I will take a peek every so often.

*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

More from this contributor:

The Effects of Technology in Today's Business World

The Importance of Financial Management Ethics

Qualities of a Good Manager

Rates

View Comments (0)