Why The Crash Isn’t Over With The Traveling Trader

Remember how we bought Apple and Microsoft at the 300 day mark and Google at the 200 day! Thinking that these mighty empires were going to hold the market up and trigger the bounce! What’s that you didn’t! Oops! Never fear if you didn’t, the Traveling Trader is back to tell us that it ain’t over folks. The correction will continue for the next little while. This is good news for some and while bad news for others it also might just be a great time to buy!

Is the bloodshed over? I asked the Traveling Trader. “In some respects yes”, he replied. “You gotta remember that the next moves by the Fed have already been priced into the market. So that won’t have so much of an impact.” Well, just when I was beginning to think it’s safe to dip my toes back into the water the Traveling Trader went on to explain: “Just because there isn’t any particular reason for the dip to continue there also isn’t a particular reason for a bounce just at the moment.”

So to paint a less than rosy picture for you: we’ve got high interest rates, high inflation, low supply and rising unemployment. Does this sound like the right environment for a sustained rally in stock prices? No siree. So according to the Traveling Trader unless the Fed gets more aggressive in fighting these trends the correction is likely to continue. So what does this mean for the average investor and trader?

Well as the Traveling Trader sees it, it’s really simple. This is not the time for panic! You gotta look at the mega cap stocks, the quality stocks. You want to buy quality stocks and fill up your portfolio with them during the dips.

So think of this correction as an opportunity for you to rebalance your portfolio. When you see blue chips at a discount start accumulating them for the long term. Also it is always wise, the Traveling Trader reminded me, to have hedges in place to guard yourself against the dips.

As always I came away from my chat with the Traveling Trader feeling somewhat reassured. The sky isn’t falling in, and if you play your cards right there is still money to be made out of this dip. So, if you would like more tips from the Traveling Trader about how to manage your portfolio during these uncertain times please watch the on topic video here. You may also like to watch his many other informative videos that can be found here.

This is a Contributor Post. Opinions expressed here are opinions of the Contributor. Influencive does not endorse or review brands mentioned; does not and cannot investigate relationships with brands, products, and people mentioned and is up to the Contributor to disclose. Contributors, amongst other accounts and articles may be professional fee-based.