A Long Term Perspective
This letter is being written on Tuesday, December 4, 2018. It’s 4pm and the Dow Jones Industrial Average has just closed, down 799 points, at 25,027, a 3.1% decline.
And yet, if I had written this letter on Friday, November 30, I could have reported that the Dow Jones had climbed 200 points, its best weekly rally since November 2016, while the S&P 500 and Nasdaq advanced almost 1%, capping off their best week since December 2011.
The truth is that we see neither of these market events as terribly significant, because both are based on the shortest possible view of market results.