In this week’s State of the Market video, Chief Income Strategist Marc Lichtenfeld shines a light on an uncomfortable truth…
The market’s brave face in recent weeks is not a sign of a rallying economy…
In fact, it’s more of a foreboding sign that reminds Marc of the calm before the storm of the 2008 financial crisis.
But no matter how much faith you have in our economy’s ability to recover, one thing’s for certain…
This market is different. Since March, we’ve witnessed ecstatic highs and heart-wrenching crashes, often within the same trading day.
We’ve watched drastic volatility become the new norm – and it’s time to adjust our trading accordingly.
Buy and Hold for Now
The biotech sector is no stranger to manic highs and sudden lows.
And we can learn a lesson from it…
When investing in the healthcare space, as Marc has written before, it’s not enough to choose a stock with a good story.
It’s also unwise to let a short-term trade become a long-term investment.
Now it’s time to apply these principles to the broader market.
Here at Wealthy Retirement, we believe in laying the foundation for your golden years using tried-and-true, dividend-raising stocks you can buy and hold forever.
But the story doesn’t – and shouldn’t – have to end there.
There’s nothing wrong with supplementing your income with a few carefully chosen trades based on upcoming catalysts.
In fact, Marc guides readers of his Lightning Trend Trader through this very process. He’s seen how catalysts like earnings announcements and clinical trial data can send shares skyrocketing.
That’s why he calls these unique market triggers “Lightning Strikes.”
The fact is, in some corners of the market, trading may be an even more lucrative and dependable strategy than buy-and-hold investing…
And nowhere is that truer than in the biotech sector.
That’s why Marc recommends that in biotech, investors should “get in… get out… and get on with [their] life.”
Start here: Consider some of your recent trades.
Have you let any short-term trades become long-term investments?
Were there any major market catalysts – or long-term red flags – that you regret missing?
Don’t forget that even a primarily long-term investor can benefit from occasionally thinking like a short-term trader.