Recession Fears Are Back: Here Is Why That Should Not Change Your Strategy
Wall Street is a bit of a fishbowl, with many industry participants hyper-focused on the short term. This is why you see lemming-like behavior when big events transpire, leading to often dramatic price moves for stocks and the broader market. Right now, there are a lot of moving parts in the world, and investors are concerned that a recession could be on the horizon.
That's not the least bit unreasonable. The bigger issue is what you should do about it. For most investors, the answer is probably nothing. Or, perhaps, even double down on your investment plan if there is a recession. Here's why.
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If your investment horizon is measured in days, weeks, or months (or for some minutes and hours), then a recession is probably going to require you to make massive changes to your portfolio. After all, your goal is to take advantage of short-term market moves, and if history is any guide, a recession will likely be accompanied by a market downturn.
That said, short-term trading of this kind borders on market timing. It is very difficult to consistently time the market's ups and downs. If you are trying to do that, a recession and bear market may be exactly what you need to convince you to switch gears and take a long-term investment approach.
https://finance.yahoo.com/...
Wall Street is a bit of a fishbowl, with many industry participants hyper-focused on the short term. This is why you see lemming-like behavior when big events transpire, leading to often dramatic price moves for stocks and the broader market. Right now, there are a lot of moving parts in the world, and investors are concerned that a recession could be on the horizon.
That's not the least bit unreasonable. The bigger issue is what you should do about it. For most investors, the answer is probably nothing. Or, perhaps, even double down on your investment plan if there is a recession. Here's why.
Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
Continue »
If your investment horizon is measured in days, weeks, or months (or for some minutes and hours), then a recession is probably going to require you to make massive changes to your portfolio. After all, your goal is to take advantage of short-term market moves, and if history is any guide, a recession will likely be accompanied by a market downturn.
That said, short-term trading of this kind borders on market timing. It is very difficult to consistently time the market's ups and downs. If you are trying to do that, a recession and bear market may be exactly what you need to convince you to switch gears and take a long-term investment approach.
https://finance.yahoo.com/...
27 days ago
