Daily Posts Archive

Apparently, the stock market didn’t agree with Wall Street’s consensus opinion that increasing the Fed Funds rate was already ‘discounted into the market.’ Instead, that quarter percentage rise has had markets seesawing since the announcement.

Yesterday was another extremely volatile day in the stock market for options traders. Being patient is challenging for many traders, and especially options traders. We’re often looking for the next home run. However, in this environment, patience is key.

This stock market collapse has lasted longer than some thought, leading the mainstream media to scramble for an explanation. The real reasons for the extended downturn are simpler than you think.

In my January 28 Cabot Wealth Advisory, I wrote about the five key characteristics to look for as the market builds a bottom. The market has deteriorated further since then, so I thought you’d benefit from brief updates in my upcoming Wealth Advisories (starting today) so you can see how the process is playing out until the bulls re-take control of the market.

The best time to buy Apple (AAPL) was in 2003 after the Internet Bubble had burst and technology stocks were treated like dirt. Of course, no one wanted AAPL back in 2003, but in the 13 years that followed, the stock soared 9,400%. The best time to sell AAPL was in mid-2012, when AAPL became the world’s most valuable company.

For investors with a little taste for adventure, emerging markets are more fun than an unlimited ticket to a go-cart track (and offer much bigger potential rewards). Yes, when markets turn sour, emerging market stocks can take some skin off. But that only happens if you’re sitting like a bump on a log and watching your holdings tank.