Question:
I’ve been watching the market, and the S&P has just been boring! 14 days without a move greater than .50%. Yawn. How are we supposed to make money?
Answer:
At Henssler Financial, we invest based on the fundamentals of stocks and build our portfolios based on our outlook for what we think the companies may do in the future. We look for sustainable growth over the long term; therefore, 14 days without significant market movement does not concern us. Year to date, the S&P is up around 8%. In the last three years, the S&P index is up around 20% on an annual basis.
We believe in a flat market you have an opportunity to find diamonds in the rough. You may be able to find attractive pricing or growth opportunities. In a sideways market, while the indices may be flat, there are sectors that will outperform. Healthcare has done very well this year, and Utilities are in demand by investors looking for yield. Likewise, there are individual stocks within the market that outperform. You need to do your research to find companies in a position to grow.
We do not subscribe to market timing, which is why a 14-day streak does not concern us. With market timing you need to know both when to buy and when to sell. It is nearly impossible to predict both the top and the bottom of a market.
If you have questions regarding your investments the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
