By JLP | January 14, 2008
My last post highlighted the fact that the Dow Jones Industrial Average is off to its worst start since 1991. The article I hightlighted failed to mention what actually happened to the Dow during the month of January, 1991. Although the Dow started the month down 5.01%, it actually ended the month UP nearly 4%:
Anyone recall the significant event that occured in January 1991?
Answer: The Persian Gulf War was authorized on January 12, 1991. Here’s a list of some of the other significant events from January 1991.
Bottom line: Worrying about doom and gloom is a waste of time and can even harm your finances if you allow your emotions to dictate your investment strategy. If you are worried about a recession, then take some steps to protect yourself by diversifying your portfolio. (Notice I didn’t tell you to sell everything and put it in cash)