Often the financial media will take one stock – like FedEx (NYSE: FDX), for example – and try to convince you that it is an indicator of whether things will get better or worse.
In today’s video, Alexander Green explains that relying on the performance of a single stock is a terrible way to run your portfolio – and investors should tune out the noise.
He notes that if you dig a little deeper, you will find that there’s almost always an explanation for a company’s performance. He also reminds us that there are two sides to every hardship the market faces. So while one business or sector may be negatively impacted by recent events, another could be profiting and see them as a benefit. For example…
- Consumers’ habits have shifted as social distancing needs have waned, a con for the once-sought-after “stay at home” stocks but a pro for the travel industry.
- High fuel and oil prices are great news for energy companies but cut into many other businesses’ margins.
- A strong dollar is causing issues for exporters but helping importers…
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