Worried about the market? Check your closets.
By Dian Vujovich
At a small dinner party Friday night, it didn’t take long for the conversation to turn from the opening of Nordstrom’s Rack at the Palm Beach Outlets to stocks. While talk was about the horrible performance of equities this past week, I told everyone to quit worrying. After all, it’s about time that equity prices correct. A 10 percent drop wouldn’t be horrible. And for anyone worried about money, I suggested looking in their closets.
Let’s begin with market performance.
Ok, we all know that it’s the job of those in the media to keep us all whipped-up about what’s going on in the markets no matter what direction prices are headed. Up, down, or sideways market news always seems to be reported in holy Joe-like urgency. On the other hand, anyone with a history of investing knows to take daily and short-term market reports with a grain of salt.
To be clear, while there are a number of stocks having a not-so-hot year, the major market indices are up year-to-date through Oct. 10, 2014, except the Russell 2000.
According to Bloomberg.com, the Dow Jones Industrial Average closed on 10/10/14 at 16,544.10; is up 1.61 percent year-to-date; for 1-year is ahead 11.11 percent; and the 52-week range goes from a low of 15,100.13 to a high of 17,350.64.
The S&P 500 closed that same day at 1,906.13; year-to-date is up 4.78 percent; its 1-year performance is an impressive positive 14.22 percent; and the 52-week ranges goes from a low of 1,688.53 to 2,019.26.
NASDAQ closed Friday at 4,276.24; is up 3.34 percent year-to-date; ahead a solid 14.2 percent for 1-year; and its 52-week range has a low of 3,751.38 and a high of 4,610.57.
The Russell 2000 hasn’t fared as well. It closed at 1,053.32; is off 8.57 percent year-to-date; down 14.20 percent for the past 1-year; and its 52-week range is 1,053.32 to
For index investors, that’s not anything close to horrible news, unless your preferred index is the Russell 2000. But if it appears that way, and/or you’re a market worrier, I have a no-brainer recommendation: Sell all of those designer duds, bobbles, watches, handbags, etc., gathering dust and taking space in your drawers and closets.
Pre-owned luxury goods are bringing in big bucks at TheRealReal.com. One visit to this site and you’ll be wondering why in the world you’re holding on to anything of value you’ve forgotten about.
Sure there is a commission to pay but heck, I can pick up that 18K Cartier Diamond Tank Americaine watch, estimated retail price $41,400. for a bargain basement price of $16,500.
Explore the variety of items offered for men and women and chances are when the market does correct 10,15 or 20 percent it will be no big deal. In the end, is there really much difference between losing thousands in the market and savings thousands shopping?
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