If you haven’t learned your lesson yet, by all means get more heavily invested in the stock market after its post-holiday miracle.You were probably watching anxiously as the Dow Jones industrial average fell more than 4,000 points from its high on Oct. 3 to its low on Christmas Eve.
That was the worst Christmas surprise that stock investors had gotten since, well, 1931.In exact numbers, the swing added up to an 18.25 percent decline. It’s been a very bad year for investors, to put it mildly.
hen, a miracle happened. The Dow suddenlypowered up by more than 1,000 points on Dec. 26. And that was followed by a nice gain on Dec. 27.Miracle or manipulation? I go with the latter. In fact, aggressive buying late in a trading session of low volume is a dead giveaway.
Whether it was government agents propping up stock prices for practical or political reasons or Wall Street money managers and pension funds doing it to make their horrid performance look better for the end-of-year review, manipulation doesn’t work for long when fundamentals are going against the market.