On December 24, 2018 the stock market plunged 2.9% for its worst Christmas Eve session ever. This put stocks in a bear market (a drop of 20% from recent highs) on fears that Jerome Powell and the Federal Reserve were raising interest rates too quickly, threatening an economic recession.
‘Twas the night before Christmas, when all through the Street
The Dow had turned ugly and was now in retreat.
Its stocks had been rung and belonged to the bears
Dashing hopes Jerome Powell would be there to repair.
Investors in a panic (all because of the Fed)
While visions of ’08 danced in our heads.
And I, reluctantly, checked my 401(k).
The worst Christmas Eve ever, and it was only Monday.
When on the next trading day should appear
A historical rally into the new year.
The Dow surged over a thousand—so lively and quick!
But they doubted it would last, if this uptick would stick.
More rapid than eagles the rally it came
The bulls came charging, for they had ground to reclaim.
Now 22,000, now 23 and 24!
On 25,000–it continued to soar!
Those who got out were left in the dust
Like deer in the headlights, their accounts had gone bust.
If only they stayed and ignored the headlines
They wouldn’t have stepped on the investing landmines.
The worst Christmas Eve ever—2018.
Just a red blip in the charts of stock market green.
The lesson we learned is forget all the noise
If you want to build wealth, you need to have poise.
There’s always bad news, always reason to worry,
But the future is bright—even though it is blurry.
These lessons are hard, despite being trite
So, “Happy investing to all, and to all a good night!”
