Saturday, August 5, 2017

Charts of the Day

Per our brief video this week, periods of unusually low volatility inspire some advisers to ready their clients for the norm.

In his Friday video commentary Chris Ciovacco does just that. Here's his look, using monthly moving averages, at 1996 (a very good year for stocks), along with his list of common investor missteps, which are:

  • Watching the market too closely
  • Watching our profit/loss too closely
  • Checking account balances hourly/daily
  • Focusing on forecasts
  • Watching financial TV
  • Worrying about what everyone else is doing
  • Worrying about what everyone else is saying
  • Trying to avoid volatility
  • Always being fearful of the next pullback
  • Always being fearful of the next bear market
  • Always being concerned about "if"
  • Always being concerned about "could"
  • Short-term focus
  • Short-term fear

click to enlarge

Here's another look at 1996, only using daily moving averages. Imagine the stress, and, alas, the trading errors, imposed upon those who fell prey to those common missteps:

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