I just read another email from a StockNews customer who says this volatile market has pushed them to the sidelines. And they will “Wait and See” to determine what to do next.
This is investing suicide.
Sorry…just no other way to say it. And yet, this is one of the most common responses by investors when times get tough.
I want to point out the insanity of this approach in the hopes to get people on a more successful investing path.
The Danger of “Wait and See”
On the surface, this seems so logical. To appreciate that the current market condition is rough. The path forward seems unclear. And thus you will wait and see what happens next to then plot your course forward.
Now the reality check…
Think of all these classic investment sayings and how true they are:
“The market climbs a wall of worry”
“Be greedy when others are fearful”
“Buy low and sell high”
These statements may be simple…but they have stood the test of time. Thus, they should be heeded by wise investors at this time.
This is especially true when you appreciate the speed of the modern market where 1 to 3% daily gains are very common. And thus if you wait and see with your money on the sidelines, the stock market could easily run ahead 5-7% in a week.
That is a big hole that most will not dig out of by the end of the year.
Not Convinced? How About This…
War is bullish.
Yes, I said it. And not because I am pro war. Far from it.
What I am is a student of investing. And the academic research is unequivocal on the subject that the market rises during times of military conflict.
To be clear, at first stocks go down on the initial shock of the event. Yet typically a month or so afterwards investors appreciate the bullish effects and a hearty bounce comes with outsized gains to follow.
Why?
Because military conflicts lead to massive increases in government spending which is positive for the economy.
Second, investors begin to realize there is very little net change to daily life. Especially in the US where folks continue to go to work…get paid…and spend all that money on products and services.
This realization will soon hit the market…as it always does. And the market will rebound with gusto.
Those in “wait and see” mode will be left in the dust.
Those who heed the investing lessons of the past, and stay invested in the healthiest companies, will be rewarded with outsized gains.
What To Do Next?
Stay invested.
However, if you are struggling to keep your head above water in this trickly environment, then perhaps investigate strategies that are actually doing quite well in 2022.
Take for instance my Reitmeister Total Return Newsletter, where I use my 40 years of experience to seek out the best stocks and apply a dash of market timing when the need arises.
This newsletter portfolio is actually in positive territory in 2022 while most other investors are getting battered and bruised.
Then there is our POWR Options service that thrives in up and down markets by taking advantage of both Call and Put trades.
In fact, in just the last few months this service has closed an impressive 9 for 9 put trades at a profit—with an average gain of +24.1%.
Let me make it even easier.
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For just $1 you can get a 30 day no-risk trial to all 7 of these services, including actionable insights on how to succeed in the current market environment and specific advice on what to buy, when to buy…and just as importantly what to avoid.
So don’t sit on the sidelines waiting to see what will happen next, when you could be profiting today!
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Wishing you a world of investment success!
Steve Reitmeister
…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com & Editor, Reitmeister Total Return
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SPY shares closed at $432.17 on Friday, down $-3.54 (-0.81%). Year-to-date, SPY has declined -9.01%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
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