The stock market can be a highly volatile and unpredictable environment for all types of investors. With uncertainty arising from the pandemic, political changes, and more, investors are constantly looking for clues as to how best to approach the market. One investor advisor has recently shared his thoughts on the current market action.
John Dolan, an investor advisor at Dolan Wealth Management, has given us his insight into the market as of late. He believes that the market is exhibiting signs of “turbulence”, which is an uncertain period in which stocks experience both large ups and downs. Furthermore, he notes that recent news regarding US-China trade disputes, economic stimulus programs, and the US presidential election are all having an effect on the market’s current action.
What makes John’s advice stand out is his caution not to focus too heavily on prognostication. He suggests that investors focus instead on “long-term trends rather than trying to predict the movement of the market in the short term.” He believes that the market’s current turbulence, while significant, does not indicate a major shift in its long-term trend – and is instead a result of short-term news.
As an advisor, John considers the importance of diversifying an investor’s portfolio to limit their risk. He recommends putting money into different types of investments, including stocks, bonds, currencies, real estate, and more. By having a diverse portfolio, investors can reduce their exposure to any particular sector, and even individual companies.
In conclusion, John believes that the market’s current action is unpredictable and may present some challenges for investors. He suggests that investors maintain vigilance in monitoring the market and their investments while staying focused on long-term trends. Additionally, diversifying one’s portfolio is a great way to limit the potential implications of short-term news. With this advice from John Dolan, investors can stay informed and can make the right decisions in the current environment.