We Need A Break Occasionally!

Since the last time I posted the Dow Jones Industrial Average has dropped more than 333 points just over 3.0% to close at 10,319.95. It has dropped for good reason. We need a break! Or you can say the increased trade deficit, China slow down, or the continued weakness in jobs brought down the market. This negative data is nothing new and it’s a great excuse for a sell off. I feel quite confident in a minor pullback. A market pull back of 3-5% is always healthy when stocks run up to far to fast.

Although I can’t predict the market I definitely see weakness, but I did however notice today some positive action in the small/mid cap stocks. That’s stocks that have a market cap of roughly under $5 Billion. These stocks are very attractive to fund managers looking for growth. Small and Mid cap stocks do very well when the economy is improving and during an economic boom. They have the potential to have accelerated revenue growth and an explosion of earnings during good times. I believe there is more upside potential at the moment and growth is scarce in the larger companies especially with the potential of a slowdown. (Perceived slow down.  I don't believe in the so called slowdown.)

My recommendation is to go find yourself a small/mid cap company that you can add to your portfolio to supercharge your returns. Also, continue to add to your favorite stocks on these pullbacks. Think of pullbacks as a gift to purchase your favorite stocks at lower prices. It’s a great feeling when the market turns back up and you can say to yourself “I’m glad I bought more” and it gives you a great confidence boost which is necessary to your success in a volatile market. We all need some reassurance from time to time!

Stay Positive!

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!