Bill Poulos, Founder of Profits Run, Reveals the Impact of the Dow's 800 Point Decline
Profits Run President, Bill Poulos, announced his stance on the impact of the Dow's recent decline of 800 points. Poulos goes on to reveal why stock market investors should remain unphased by the event and where the market is headed in the coming months.
WIXOM, Mich., Oct. 12, 2018 /PRNewswire-PRWeb/ -- Bill Poulos, Co-Founder and President of Profits Run Inc., announced his viewpoint on why the Dow experienced a tremendous drop on Wednesday, October 10, 2018. As interest rates rise and the U.S. trade conflict with China continues, many investors left the market. The Dow Jones industrial average plunged over 800 points, translating into 3.2 percent, in one day. Bill Poulos shared, "A few weeks ago, the markets made all-time highs. Now, the Dow has dropped over 800 points in one day. The media is abuzz with talk of the end of the bull market, that fear is rising in the market, that interest rates rising concern Wall Street, that the trade war with China is weighing on the market, and more."
In an article titled, "Dow drops 800 points, led by tech shares, a stock market investors fear higher rates," USA Today reported (10/10/2018) that the Dow Jones industrial average dropped nearly 832 points to 25,599. The drop is the second-worst one-day plunge since the February 8, 2018 drop of 1,000 points. Technology stocks were hit hard with the Nasdaq seeing a 4.1 percent decline.
Profits Run President continued, "The market is now trading at the same level it was back in July, just a couple of months ago. It doesn't sound like there is much to be concerned about. The economy is as strong as it's been in years and it's projected to remain strong for the foreseeable future. Unemployment is at all-time lows, while job creation is at all-time highs. Corporate earnings are very strong and there is relative peace in the world – at least no war between major powers."
Bill Poulos went on to ask and explain, "So, why all the gnashing of the teeth, trotting out of the talking heads, looking for any shred of negative news that could possibly explain why the market dropped 800 points? Well, it's because the media is not really in the business of assisting investors with their investment strategies. Rather they are in the entertainment business and they know that when the market drops like it did today, people are emotional about it. They are fearful, and the media plays off that."
Poulos then revealed, "More sober minds know that this drop is not unusual given the relentless climb of the market since February of this year—only interrupted sporadically by an occasional selloff of less than 10%. Also, students of the market understand that before a bull market ends it normally will take several weeks and months of topping formations with lower highs and then eventually lower lows. At some point then, the market would be prime for bear market territory."
In conclusion, Bill added, "It's far too early to project the beginning of a bear market right now. This is only a small correction in the scheme of things. Furthermore, the seasonal tendency of the market is to bottom in October. Then, to rally from there to year-end and into January. I would expect that this is most likely to happen again this year. We should see the market probably drop further from here. Perhaps 100 to 300 Dow points, maybe more before finding a bottom in the next week or so. Consolidation then moving sideways to a little bit higher and then setting the stage for a year-end rally. Of course, anything can happen in the markets, but that seems to be the most likely scenario at this point."
Bill Poulos is the co-founder and president of Profits Run. Bill holds both a bachelor's in engineering and a Master of Business Administration, with a major in finance. Poulos is a philanthropist, retired automotive executive, and author. Poulos lives in Michigan with his wife, Karen. Karen and Bill have been married for more than 48 years and have three grown sons and two grandchildren.
About Profits Run, Inc.
In 2001, Profits Run, Inc. was co-founded by father and son duo, Bill and Gregory Poulos. Traders often say, "Cut your losses and let your profits run." This popular saying is where Profits Run's name derives from. The company's mission is to educate people on simpler ways to invest while properly managing risk.
SOURCE Profits Run, Inc.
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