Chart Action: A Reminder

J.P Morgan puts out a quarterly Guide to the Markets. It’s a great resource filled with a ton of valuable data.

What’s crazy is that investors can look at the same data and come to completely different opinions.

• Someone sees a sell signal.
• Someone finds a reason to buy.
• Someone swears a recession is around the corner.
• Others see growth on the horizon.

This is why investing is possible. If everyone saw the same thing there would be nothing to buy or sell…

But this chart is different.

Because we don’t make forecasts or predictions about the direction of the market, this chart is a great reminder that as bad as it can get, tomorrow can be a better day. Unfortunately, the peaks and valleys can be far apart in any given year but, since 1980 the market has never ended the year at its lowest point.

People lose money in the market more from psychological factors than analytical ones. More financial advisors make bad recommendations because of emotion, rather than analysis. When you manage money sometimes you can get lost in the day to day action.

By looking at this chart it’s possible to see the bigger picture and let things unfold.

Next time you look at your portfolio, remember this chart before you make any sudden moves.

-Jared