According to one study, when markets fell by 21%, retail portfolios were down by 32%. It’s been a devastating year for ordinary investors, which means “safe stocks” are back in vogue.
This desire for safer stocks is especially apparent among those who have seen firsthand that the “next big thing” can decline in price as quickly as it rises –
After a devastating few years, it is hard for any investor to deny that the economic climate is anything but bearish. With repeated global thrashings from the COVID-19 pandemic followed closely by sanctions against the Russian Federation, international investors have been left reeling.
But even in the darkest of times, there are a few rays of sunshine.
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Charlie Munger said at the 1996 Annual Berkshire Hathaway Shareholder Meeting: “Warren talks about these discounted cash flows. I’ve never seen him do one” [“It’s true” replied Buffett. “If (the value of the company) doesn’t just scream out at you, it’s too close”]
“Since I know of no way to reliably predict market movements,
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Knowing the best course of action for your money can be challenging in uncertain times. Do you keep investing in stocks and hope the market rebounds? Or do you go to cash and wait for things to stabilize?
Both options have pros and cons, and deciding which is the right move for you can be challenging.
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It’s easy to get lost in the financial weeds. What should you focus on? Growing revenues, technical breakdowns, sentiment extremes? The list is endless and every day the noise amplifies. Before you know it, you’ll be paying attention to excess inventories at retailers and trying to correlate it to seasonal sales cycles. But how does all that help you make money?
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No matter the market conditions, some stocks stand the test of time as if economic booms and busts don’t matter. When you stumble across those stocks it’s worth seriously considering adding them to your portfolio.
Here’s why.
When markets fall, retail traders on average suffer more. One research report showed recently that with markets down 21% this year,
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Theme parks are open, cruises are sailing, movie theaters are back in business, and the COVID-19 pandemic is seemingly in the rearview mirror. So, is now the perfect time to buy the battered Disney stock (DIS)?
Walt Disney is one of the most recognizable names in the entertainment industry,
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Shopify, company that provides eCommerce software for small businesses, has been on a roller coaster ride this year, with the stock price falling more than 78%. This drop is due to growing concerns about the current state of the economy and how it will affect small businesses. However, Shopify remains one of the best options for small businesses looking to start or expand their online presence.
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Some stocks are just plain old boring. In bullish markets, you can gloss past them for better opportunities. But in bear markets, they can save your portfolio. One such company is Procter & Gamble.
Less than a year ago it was trading at over $160 per share. Since its 52-week high was reached,
Most of the time, there is a direct relationship between risk and reward when it comes to investing. The two move in lockstep, and investors must accept the higher level of risk that goes along with high-growth stocks. However, occasionally there are companies that offer the best of both worlds – high growth, strong returns,
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