Bloomberg is out with an article detailing the largest election day-inauguration day decline ever. The story implies that this is somehow relevant to today’s stock market. The reality is that the stock market is a very different place today than it was in 1933 and the fundamentals of the current market are entirely different from the fundamentals in February of 1933.
Picking lone data out of a set of hundreds like this is counterproductive. It is not statistically relevant at all. In fact, a good statistician would likely throw the 1933 data out because it skews the data so substantially. We are in unique times. There is no playbook for this market.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.