Stock Market Update- 12/1/17
As I’ve mentioned many times, the stock market hates uncertainty. As I’m sure you all know, on Friday, December 1st, Donald Trump’s former national security advisor, Michael Flynn, pleaded guilty to lying to the FBI about conversations he had with Russia's ambassador. Over the next seven trading days I expect the market to continue to react negatively to the news coming out of Washington D.C. Tech stocks will react the most.
Apple stock (AAPL), a member of the Dow Jones, dropped .80 or .47%. By contrast, Square (SQ), a non-Dow component, dropped $1.00 or 2.55%. This is a powerful example of why we want 1/3 of our entire portfolio invested in Dow stocks vs. technology stocks.
Going forward, please make sure your allocation is aligned with Wealthy Investor discipline. If you are too heavily weighted in tech stock, you are going to see the value of your portfolio decline significantly over the next few weeks.
Remember the Wealthy Investor program is about creating long-term wealth and residual income, while employing discipline. In this market, allocation will be the key to your success.
-Tyrone Jackson
The Wealthy Investor