Where the Market is Going Today

Where the Market is Going Today

The stock market has been on a roar lately. Ever since the downturn and outright collapse in 2008, the market has been rebounding nicely, despite the factor that unemployment rates and other economic factors have not yet turned around. At it’s very lowest point in 2008, the Dow Jones Industrial Average fell to nearly 6000. However, since then it has rebounded to just over 11000 recently. If you do the math on this, this would mean that the Dow has nearly doubled since the low point in 2008.

When you have markets doubling in a matter of under two years, you need to step back an figure out if this rally has more room to run or is stalling out. Given the fact that the “real” economy (i.e. unemployment, housing starts, and other indicators) has not yet come back, one should be cautious about putting their money to work here. It appears that the short term upside potential in the market is very limited, and the possibility of a downturn is higher than ever.

When you invest in the stock market, you want to get in at the lowest point possible. Currently the market is overvalued and even though stocks look like they are better than ever, they may be just getting ready to take a dip.

Tracking Finances

Keeping track of finances today is such a hard concept. I used to be able to tell you exactly how much I would spend at the grocery store. With the rising cost of groceries, every time you go you spend a bit more. Each visit to the gas pump seems to cost more than the last. This is why it is in your best interest to keep a good budget. Figure out how much your bills will be each month and how much you will have left over after paying them. Do not spend more money than is left over.

It sounds hard to do, but this is the best way to keep yourself out of debt. You won’t need to put things on credit cards because if you don’t have the money left in your budget you just don’t spend it. If you feel that there isn’t enough money left over, find a way to make a bit of extra cash. You can always find a part time job, freelance some work, or even have a garage sale. With the economy today, you have to find a way to make it work. Money can be a large stress for people so keeping track will help you live a happy life.