Many investors have invested their hard-earned money in the stock market with the hopes of doing well. Unfortunately many have not grown their wealth in the stock market in the last 8 years near as much as in the time period from the 70’s until year 2000.

In January of 2000 the Dow was at an all time high of 11,722. In talking with investors at that time the wishful thinking was intact by many. I heard experts say the Dow will go to 20,000 in the next 1-2 years. I said no and obviously history tells all. Recently the markets have lost 30%-50% in investors portfolio’s with a modest recovery of 10%-15%. Many are calling this a Bear Market Rally. This rally, if that is what you want to title it, happened because of the stimulus money injected into the system. Recently this money has been spent thus running out. Also the market has thus run out of steam. Since the beginning of June the market has been in a pull back and most of the sentiment on Wall Street is much more downside.

If you understand markets and how they work then you can benefit. They need volume and there is not much volume in the market since many people are in money market accounts.

Not all stocks follow the Dow but it is the strongest indicator that Wall Street uses as a yardstick. The Dow is at 8147 which means it has lost by index 43.9% since its peak in 2000. In the same time period Gold has moved up 200% plus.