As you are getting ready for another wild month in the stock market, a look back at some hot topics could provide some valuable insight. What were the major headlines this February?
It was a wild, wild west!
February is usually a sleepy time for the stock. But last month was one of the craziest months since 2008.
The Dow dropped more than 3,200 points in just two weeks. After that, stocks bounced back and recovered some of those losses.
That madness we all witnessed was even more shocking because it followed a period of calm. Also, it arrived during a booming economy.
“It’s been a real roller-coaster. A wild ride,” said Ed Yardeni, president of investment advisory Yardeni Research.
In the first few days of the month, investors became worried the economy, supported by tax cuts, could compel the Federal Reserve to raise interest rates.
Inflation fears caused both the Dow and S&P 500 to decline. Both indexes had their worst month in a few years.
And after all these, it took very little time for the market to rally back as investors, encouraged by the rising profits, got into the BUY now mode.
Keep your eyes open this month. You might miss something big, again!