Edward Flores's Avatar
Edward Flores
published in Blogs
Mar 05, 2021
What to Do in a Market Sell-Off

What to Do in a Market Sell-Off

Market declines are a reality of investing. No one can avoid them all, unless you stay in cash all your life (which is still a money-losing strategy, if you consider the impact of inflation).

The throes of a market downturn can be emotionally taxing to investors, but a market corrections should not mean an invitation to panic. Experienced investors know how to mitigate emotional decision-making during market sell-offs with a measured, rational approach that rides-out temporary pullbacks.

First, creating and sticking with an investment plan can help investors weather the storm of a sell-off. When plans are constructed with care – accounting for present and future goals, risk tolerance, and other factors – investors tend to avoid making reactionary decisions with negative ramifications. If you’ve worked with an advisor to select an asset allocation that addresses your long-term objectives and your tolerance for risk, then just remember that your asset allocation also accounts for the natural ups-and-downs of investing. It comes with the territory.

Diversification provides a vital safeguard against negative market behavior. Stocks as an asset class have reliably delivered solid returns over time, but they’re also inherently volatile. Less volatile assets like bonds may not skyrocket in value, but their (generally speaking) low correlation to the stock market and their ability to post steady or slightly positive returns in down equity markets makes them a great way to hedge against losses and, consequently, an important part of any portfolio where risk tolerance is a factor.

Timing is crucial when investing, but that doesn’t mean trying to time the market when it’s in a volatile patch. Picking and choosing when to be active based on downturns can mean missing out on large gains. Data shows that every downturn on the S&P 500 of 15% or more since 1929 has resulted in a recovery – to the tune of a nearly 55% average return in the year following a decline. This means a real chance to profit for those brave enough to endure the down cycles.

While timing can lead to big gains, earnings are typically maximized by a patient, long-term approach. An impending bear market may seem catastrophic in the short term, but investors who can see beyond immediate events and maintain perspective are usually rewarded over time – after all, the S&P 500 had a mean return of 10.43% over 10-year periods from 1937 to 2014.

Even healthy markets have downturns, but corrections and new highs have consistently followed throughout history. Staying rational and focusing on a well-planned investment strategy means viewing sell-offs for what history indicates they are – a frustrating, but temporary, market behavior portending better things to come.

Looking for Fresh Investment Ideas? See How Algorithms and A.I. Can Help

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Tickeron’s new financial website is available to beginners, intermediate investors, and even experts and advisors. Explore tickeron.com today.

Related Tickers: SPY
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.
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