"Percentages Not Points for Payoff" By Guy Cohen Was Published Today In The Absolute Wealth Newsletter

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Guy Cohen discusses the Tuesday stock sell off in today’s Absolute Wealth newsletter article.

The Absolute Wealth Newsletter

The Absolute Wealth Newsletter

Stocks have reached recent new post-2008 highs with a jump in the broad based S&P 500 Index from 666 to 1,377.

The article "Percentages Not Points for Payoff" by Guy Cohen is the topic in today’s Absolute Wealth newsletter. The newsletter says, the stock sell off Tuesday reminds people just how stable the market has been over the first two months of 2012. Anxiety and emotion resulted in the fear that the index had crashed back to the lowest levels since July, 2011, the Absolute Wealth newsletter reports today.

The financial crisis concerns are mapped through the increases in this measure, the Absolute Wealth newsletter states, with repeated flare-ups since the 2008 peak in fright. The newsletter explains worries have been drawn out during the last three years that the Eurozone debt issues could lead to another recession.

The Absolute Wealth newsletter explains that a very important point to consider, is that each renewal of concern has had a more shallow, muted sell off and lower peaks. The newsletter goes on to report, that stocks have reached recent new post-2008 highs with a jump in the broad based S&P 500 Index from 666 to 1,377. Breaks have eventually resulted in new highs in every instance so far, the Absolute Wealth newsletter says.

The 200 point drop in the Dow was the largest move of 2012, and the first triple digit decline of the year, the Absolute Wealth newsletter explains. The newsletter goes on to say, the 200 point drop was only around 1.5% now that the market has rallied to much, much higher levels. The best way to interpret this, is that a one or two percent move is by no means catastrophic, adds the newsletter, especially after recent straight up gains. The newsletter reports, that the 200 point moves do not tell an objective tragedy tale when the Dow is at 13,000 versus the base at 6,000.    

A key point to keep in mind, the Absolute Wealth newsletter explains, is that the up trend remains intact until proven otherwise. The Absolute Wealth newsletter reports those that have attempted to pick the top of a market have been causalities of their expensive opinions.

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