Well, what every investor does not want to hear is that the stock market is crashing. But, unfortunately, that is the news going around at this point in time. There are talks about the stock prices going down, massive corrections bound to happen, huge losses on the part of companies, and so on. Some investors are even panic selling some of the stocks to try and salvage what they think is left of their shares. However, this is not actually the case right now. Ok, let me rephrase, things have not got that bad, so there is actually no need to panic.
I just want to share my thoughts and views about what is happening in the market at these uncertain times, and it is my hope that you follow and understand. I also want to state that these are strictly my views and opinions, so it may also be wrong. But I am drawing facts and conclusions from the numbers and careful observations of what is going on in the stock market.
Hello readers, you are welcome to this blog edition. My name is Antoaneta, and it is my pleasure to be presenting again today. In my channel, there are a lot of content concerning financial freedom and general lifestyle. Therefore, I am urging you to subscribe to my channel. There, you will see other related contents like “Cathie Wood’s warning (About the stock market),” and “My Top 8 ideas for stocks for January 2021,” Also, my ever-expanding Facebook community is in need of your presence, so please join my Facebook page to get exclusive information about whatever is happening on my channel. So, let’s go straight into business.
Best Stocks To Buy Now
Looking at the top indexes in the world today, we will notice one thing, most of them are down as of this week. At some point, the S&P 500 was down by more than one percent, the Dow Jones was down by less than one percent, and NASDAQ was done by over three and a half percent. Looking at these numbers, you can agree with me that this is really not a market crash.
Fine, the market is generally down, but it is not crashing at all. Trust me, some stocks have seen worse. For example, Peloton Interactive Inc has seen a 12 percent dip, Tesla has seen an eleven percent dip, Nio Inc has seen a fourteen percent dip, and of course, Palantir Technologies Inc has seen a twenty percent-plus drop. These are stocks that have actually seen crashes because they have lost billions of dollars between them.
However, some stocks are having the opposite of a drop. Examples of these best stocks are Wynn Resorts which saw a six percent raise, JP Morgan Chase & Co. went up about one percent, Starbucks Corporation went up by almost six percent, and even Carnival Corp went up by almost five percent.
So, you’ll agree with me that the sector rotation is real. Money is going around in the stock market. Those best stocks of 2020 are seeing drops because investors are shifting their attention to other stocks that did not enjoy so much that year. When high growth stocks skyrocket in a short period, the market is bound to give winners a reality check.
The sooner you realize that these things are normal, the better you become as an investor. You must invest in different sectors. While you invest in high-risk stocks, you should also take steps to balance your portfolio by investing in other stocks. Just imagine making all your investments in the NASDAQ or DJIA, you will probably be feeling bad. If for any reason it gets worse, you may just regret investing. So, I am an advocate of making those high-risk investments, but also making other investments to balance your portfolio.
So, let me share my opinions. What exactly should one be doing at this time? Well, the best thing to do is start looking for ways to invest in the “safest” of companies. External factors can cause major upsets, but you need to first try your best to prevent what you can. How does one do that? So, you should be investing in the top companies in the top sectors, in fact, you just need to focus on the best of the best in all the top sectors. At this point, smart investors should go back to the fundamentals.
When I say fundamentals, I mean balance sheets, cash flow statements, income statements, and other reports. Some of the “safest” companies, for now, are Pepsi, Apple, Facebook, Amazon. These companies may have been affected by external factors and they are currently in the red. However, they are blue-chip companies and are sure to bounce back, so it is better to buy them at this dip, sit back, wait a while, and watch the prices soar back and give you the returns you anticipated. I must be frank with you; you will not see double returns on your investments in one week. But, if you have the patience and have made the right decisions in the best stock , you will be sure to make massive returns.
It is no crime to enter speculative stocks, After all, people are still making good returns from it. However, to be a great investor, you have to prepare for the long term. I will even suggest that those short-term stocks should not make more than ten percent of your portfolio. This makes you worry less when times like these come. At these times, a wise investor should be more worried about investing in best stocks and taking advantage of the current situation.
All you need to do is worry about being a long-term investor, make the right moves, and be hopeful. Focus on good companies because they are sure to give you great returns over time. Just be careful with your money.
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Recommended books for further reading:
- How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
- The Warren Buffett Way
- Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage
- How to Make Money in Stocks: A Winning System In Good Times And Bad
- A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today