February was Good to Investors

February was another good month for the stock market, pushing all the indexes we follow into double digit returns for the first two months of the year. Even though it had appeared in December that volatility had returned to the stock market with a vengeance, it settled down and started a climb this year that will be difficult to maintain. Both the Dow and the S&P 500 are up over 11% so far in 2019, and the Russell 2000 and NASDAQ are doing even better. However, the highs that were set at the end of the third quarter last year have yet to be breached. If the market continues for another month like it has for the first two, it will begin setting new records sometime this month. Does that mean we should jump in the market now and throw caution to the wind? Not hardly. If you try that it’ll make you pay. The thing most difficult to keep check on is our emotions. We get so worried when the market does what it did in December, but when it goes up we fear we may miss out on the upswing and make mistakes there, too. Warren Buffett said one time to invest like you couldn’t see or do anything with your investment for ten years. But we tend to watch it way too closely. If you keep tabs daily, especially in this market, you will drive yourself crazy. If you have good investments and a good advisor, and you let them both do their jobs, you will likely be very happy over the long term