DailyBubble News
DailyBubble News

How Low Could Stocks Go?

In my line of work, the stock market, which is often irrational and unfair, presents a unique challenge. Despite my preference for rationality and fairness, I have learned to expect the unexpected over my 44 years of experience.

Currently, stock prices have outpaced the fundamentals, with high inflation delaying anticipated rate cuts. This has led to overvaluation in the market, prompting a necessary round of profit taking. The S&P 500 chart suggests a retracement towards 5,000 from recent highs.

While a rational move would involve a modest pullback, the market’s irrational nature could potentially lead to a test of the 200-day moving average. Nevertheless, investors may look ahead to anticipated rate cuts, driving market movements.

As a trading plan, it is important to remain invested in the bull market while adjusting the stock mix for resilience. Emphasizing value over growth, investors can leverage tools like POWR Ratings for guidance. Additionally, focusing on earnings reports and selecting companies likely to beat expectations can drive portfolio performance.

Ultimately, now is a critical time to prioritize top-rated stocks based on POWR Ratings for optimal returns. To explore these recommendations further, click the link provided.

Stay informed and best wishes for successful investments!

– Steve Reitmeister, CEO of StockNews.com and Editor of Reitmeister Total Return

SPY shares are currently trading at $503.53, experiencing a slight decline. Year-to-date, SPY has outperformed the S&P 500 index.

About the Author: Steve Reitmeister, also known as “Reity,” shares his extensive investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background and access his latest articles and stock picks.

For more information on the stocks mentioned in this article, refer to additional resources provided.

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