Navigating Uncertain Times: A Market Recap with Mish Schneider
The stock market has been volatile lately as traders navigate uncertain times – especially with the widespread economic implications of the pandemic. Recognizing the importance of staying abreast of current trends, Mish Schneider, Director of Trading Education and Research at MarketGauge.com, joined the hosts of perceptionsmedia.net’s “Financial Pelican” program to discuss recent changes in the stock market.
Schneider began the show by noting that because of the COVID-19 pandemic, the market had been extremely unpredictable in recent weeks. He explained that, while investors’ risk tolerance plays a part, it is impossible to predict which stocks will be most affected because even businesses in the same sector might have indicated contrasting performance recently.
Schneider went on to draw attention to the fact that the market had become extremely competitive, specifically mentioning the ‘Nasdaq vs. S&P500′ rivalry. According to Schneider, the Nasdaq had outperformed the S&P500 recently, with the Nasdaq’s Composite Index reaching levels never seen before last week. He said that this was, in part, due to the success of tech companies; however, he also added that other sectors have been performing just as well.
Schneider also pointed out that the risk of a market downturn was always a possibility, offering simple strategies on how to protect against losses. He stressed that the importance of keeping emotions in check when making decisions and making decisions backed by facts, rather than fear. Schneider explained that investors should invest in companies that are making money and investing into them for the long haul. He also said it was important, not just to buy for growth, but also look for stability and dividend income when selecting stocks.
In closing, Schneider said that while investors have many complex decisions to make, they still must remember the basics when investing in the stock market. His advice for investors was to remain patient and think of the long game; although some losses may occur in the short-term due to volatility, the goal is to achieve steady growth with consistent investments over the long-term.
Ultimately, Mish Schneider’s advice makes perfect sense given the current state of the market. His pointers for protecting against losses and his acknowledgment of the risks involved in investing big are welcome to any investor. With his clear-cut, data-backed advice, investors now have additional tools to use in order to make decisions regarding their portfolio.