How You Can Avoid Common Market Mistakes
- The media is touting how well the stock market is doing right now.
- But we are paying attention to something more real.
- We hope you can learn from these mistakes.
Editor’s Note: Protecting your retirement in a time like this can feel impossible. But millions of Main Street Americans have the chance to take control of their financial future through an explosive new movement that is starting to go viral.
Before you do another thing… Watch this video while there’s still time to choose your financial future. — Annie Stevenson, Managing Editor, Winning Investor Daily
The stock market is not the economy.
Think about it…
The market is up almost 4% this year — yes, even after the correction this month.
The economy, on the other hand, contracted around 4% as of June.
It’s easy to understand the confusion though. After all, if businesses are cheering and many stocks are flying, doesn’t that mean our economic engine is roaring?
Here’s the thing though: The stock market is made up of public companies. These are usually large, national businesses. And the smaller ones are usually niche operators — like miners — looking for public backing.
The stock market doesn’t include your local bar down the street.
It doesn’t include the mom-and-pop clothing store around the block. Or your trusty local mechanic who took over the business from his dad. Or even most of the restaurant industry, which is privately held.
It doesn’t include the small businesses that make up your community.
I don’t need to tell you that these companies are suffering the most during this pandemic. The restaurant industry essentially ground to a halt in March, only to reopen in fits and starts since then.
And overall, in-store retail traffic has dropped around 80%.
The stock market may continue to rise through the end of the year, but the economy will continue to feel the strain.
Here at Winning Investor Daily, our advice is the same as it has always been: Stay calm, don’t buy into the hype, and keep your retirement safe by investing in things you want to own for the long term.
Our country is beautifully resilient, and we’ll get through this. In the meantime, be gentle with yourself and forgive any missteps you make.
We’re all human. In fact, that’s why our team focused on the lessons you can take this week:
- Alpha Investor Editor Charles Mizrahi let readers see one of his most expensive lessons. An ill-fated eBay auction gave him a reminder that following the hype never leads you somewhere good. Read his story here.
- Charles’ Managing Editor Lina Lee turned her attention to the Presidential debates. Poor moderator Chris Wallace never stood a chance. She shows you why that matters.
- Technical investing master Chad Shoop takes a trip back to college, where he learned a painful lesson about the markets. Cree Inc. (Nasdaq: CREE) was one of the first stocks he studied … right before the 2008 market crash. Today, he shows you what has changed.
- And our newest writer, Nicole Zdzieba, reminds us of the classic failure of Blockbuster. The Alpha Investor Assistant Managing Editor remembers happy days as a child at the video rental store. And she breaks down how the company failed.
Ultimately, mistakes are necessary on the road to success. And we are happy to show you how they can help you profit down the line.
How Can We Profit?
As we said above, the best way to protect your retirement is to invest in companies that you’d want to own for the long term. But picking those companies can feel daunting.
That’s why we take the guesswork out of it.
Owning a basket of companies with low fees helps any investor to instantly diversify their retirement. These funds, exchange-traded funds (ETFs), are powerful tools in your portfolio.
Here, one of our favorites is the Vanguard Value Index Fund ETF Shares (NYSE: VTV). This fund gives you the benefits of investing in our favorite companies, with just one click.
It holds companies like Berkshire Hathaway (Warren Buffett’s holding company) and household names like Johnson & Johnson and Procter & Gamble.
We’ve learned that finding the right companies to invest in can be hard. But we stick to our principles and invest in safe, profitable companies at attractive prices. That’s why we recommend funds like VTV.
Check it out today.
Managing Editor, Winning Investor Daily