Why You Should Get ‘Back to the Basics’ in This Market
Whether it’s in sports or life, I often use the phrase “back to the basics” to help me…
Take golf, for example. If you play the game, you know what I’m talking about. And even if you don’t, it’s simple…
When things go bad, they go bad fast.
It could be poor posture, bad balance, opening the club face as you hit the ball, or swinging too hard. Any number of little changes can throw your golf swing out of whack.
Heck, everyone who plays the game has likely dealt with problems like “slicing” from time to time.
On the golf course, I see folks mentally break down all the time. But getting mad or frustrated weakens your technique. You need a simple plan to save your game.
If a golfer takes all the nuances out of his swing, it’s often easy to turn things around.
When I run into trouble, for example, I just try to hit the ball straight and on target. I don’t think about any of the other things that could be going wrong.
In other words… getting back to the basics is the recipe for success.
It’s all about the fundamentals and making sure your technique is on point. And as I’ll explain, your strategy shouldn’t be so different when it comes to investing…
At Chaikin Analytics, our goal is to find the best combination of fundamental and technical indicators to pick the right stocks.
Look, things don’t always go as planned… whether it’s sports or life.
What matters most is how you react to the problem. And it all relates to the current market environment…
A lot of investors worry that the bull market has gone on too long. Or they fear that it’s running too high, too fast.
After all, just look at this chart of the S&P 500 Index since the October 2022 bottom…
We’re in uncharted territory. Stocks have just kept running higher and higher. And market cynics have plenty of reasons to feel the way they do…
Higher interest rates have lingered for longer than expected. That might hurt corporate profits.
The next presidential election in November is quickly approaching. And depending on the result, the markets could react violently one way or another.
Meanwhile, the U.S. government is more than $34 trillion in debt. It feels like our politicians are printing money every minute.
None of these worries are off base. But in the end, I want you to keep one thing in mind…
Don’t overanalyze what’s going on. You’ll only succumb to “analysis paralysis.”
The bull market is still a bull market until it isn’t. You don’t want to miss out on the upside of stocks because you’re scared of something that might happen.
Instead, consider cutting underperformers to free up cash for stronger ideas.
The prudent thing to do is to get back to the basics…
In a bull market run like this, you want to let your winners run and cut away the losers. Focus on what matters most… And don’t get bogged down in the details.
Good investing,
Pete Carmasino
This article was originally published on this site
