The 1001 Nights of Ali Baba's Investments
#173 An update on the US Indices: DJIA, S&P500, Nasdaq Composite
Introduction
Once upon a time, in a faraway land, there lived a poor woodcutter named Ali Baba. Despite his financial struggles, he always remained optimistic and hardworking, hoping for a better future.
One day, while working in the forest, Ali Baba stumbled upon a hidden treasure in a secret cave. The treasure belonged to a group of forty thieves, and Ali Baba decided to take some of the treasure for himself. However, when the thieves discovered that someone had taken their treasure, they began to search for the culprit.
Ali Baba managed to escape the wrath of the thieves, but he knew he had to be careful. He decided to use his newfound wealth to invest in the stock market, hoping to grow his fortune and secure his future.
For the next 1000 trading days or nights, Ali Baba watched his investments grow steadily. However, as the 1001st day approached, he began to feel uneasy. He had heard from a wise old sage that after 1000 trading days or nights, there was a possible downturn in the stock market.
Ali Baba didn't know what to do. He didn't want to lose all his hard-earned money, but he didn't want to miss out on any potential gains either. Finally, he decided to take a measured approach and sell some of his stocks to lock in his profits while keeping the rest invested for the long term.
As it turned out, the sage's prediction was true, and the stock market did experience a downturn. However, Ali Baba's careful planning and foresight paid off, and he was able to weather the storm without suffering any major losses.
From that day forward, Ali Baba continued to invest wisely and grow his wealth, all while keeping an eye out for any potential risks or challenges that might come his way.
Why I tell this story: as it happens, we are approaching 1000 trading days…more on this in the below update for our premium subscribers. Will the 1001 nights in Ali Baba’s fairy tale repeat in today’s stock market? Let’s review.