Where Are U.S. Stocks Headed?
U.S. stocks are somewhat mixed this morning, with some sectors gaining and others falling a bit. In general, though, even the news that higher oil prices are being seen had small effect on stock index futures — although that could change.
One of the main worries right now is that there could be more bad news. Every time there has been some optimism on the stock market recently, things have turned around and become worse. Bloomberg reports on some of the fears regarding U.S. economic data:
“My concern is that we still have not yet seen all of the bad news come to the table,” James Bevan, who helps oversee about $10 billion as London-based chief investment officer at CCLA Investment Management, said in an interview with Bloomberg Television. “I’d be much happier attempting to buy the S&P 500 at 1,150,” or about 10 percent lower than yesterday’s closing price, he said.
Predicting the stock market
Predicting the stock market is actually rather difficult. It is a volatile market (although not as volatile as some), and it can change direction unexpectedly. And, while it is possible to pick out trends in the direction of stocks and other investments, one never knows when that trend will change. This is why “timing the market” rarely works.
For most people, the best investing strategy is to buy when there is a dip and try to sell when there is a bounce. For those who are not concerned with being active traders, the “buy and hold” strategy is one that is often used. Since the stock market generally gains over time, having solid stocks that are likely to have steady gains over several years are considered relatively safe bets — although even the best plans can go awry and the best companies fail.
In the end, it is important to note that no one really knows where U.S. stocks are headed — especially in the near future. The best you can do is, well, the best you can do.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
Tags: stock market, stock market news, investing blog, U.S. stocks,
economy, investments, investing strategy
