The stock market has been going crazy for the last couple of years, and it seems like all of that craziness is finally starting to bounce back. This has made it extremely scary to start investing and even scarier if you’ve been investing.
Many new investors have never seen so much red, but what does it mean, and will it bounce back? I talked with Roger Scott of WealthPress to get his professional opinion on the market and to garner some advice.
Roger Scott has been a professional trader for over 20 years. He and WealthPress are dedicated to improving the financial literacy of everyone, whether they have a formal education in finance or not. Let’s see what Roger Scott has to say about the current market.
Technology was booming, many startups were doing extremely well, and overall, everyone was investing and trying to create the next Uber, Tesla, and so on.
On top of this, retail investing became extremely popular, and many stocks were being boosted, not because of fundamentals but because of the hype surrounding them. The current market has been expected, but some things did speed the process and compound the issues.
Well, the situation with Russia and Ukraine was a huge factor. On top of that, there has been a huge semiconductor shortage and a lot of general issues in the supply chain.
We’re still feeling the effects of COVID, believe it or not, and now inflation has started to become a huge deal. All of these things are just creating the perfect storm.
I can’t tell someone whether they should invest or trade; that comes down to what money you have and what money you need. Sometimes cash in hand is better. However, I believe in our market. Time in the market beats timing the market.
You truly cannot time the market, and what’s happening now will happen again in the future. So, I choose to ride out the storm and continue to make investments that I believe in.
Fundamentals always matter. In the last couple of years, fundamentals were kind of tossed out the window. People were investing in gut instincts and peer pressure. This was great, it was fun, but now the market is returning to normal and fundamentals matter again.
There are still solid companies out there. Companies that are relevant have been relevant and will be relevant. They will always innovate and return profits. These are the companies that I personally have no problem investing in.
If it were that easy to predict the market, everyone would be billionaires. I don’t believe this is the end. I think we still have a little ways to go before the end.
Keep in mind that this is the worst the market has been since the 70s, so things look bleak right now. Slow and steady wins the race in the end. I make my living trading, but without professional advice, I would just buy solid companies and wait out the storm.