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?
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: