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Jittery? Here's How to Profit from Today's Market

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The Nasdaq entered a new bull market in a flash, soaring 24% from its early April lows, with the S&P 500 on the cusp (+17%).

Plenty of investors missed this rally for various reasons, from attempting to call an exact bottom to waiting for the ‘all clear’ signal on the tariff front. Some investors might even have sold out of positions completely as fear ratcheted up.

The goal is not to shame anyone.

Instead, the furious rebound over the last month and a half highlights two straightforward evergreen investing strategies: buy into weakness and stay exposed to the stock market no matter what.

Buy Into Weakness, Sell into Strength 

A stock market selloff is a chance to buy great stocks when they are “on sale.” Many people who might rush to buy a car, TV, or fill-in-the-blank when they go on sale by 10%, 25%, or even 50% might hesitate to strike when stock prices fall.

But buying stocks when they have dropped significantly makes even more sense because they are appreciating assets, unlike most things people buy on sale.

Warren Buffett’s mantra of being greedy when others are fearful, and fearful when others are greedy has transformed into a cliché because it’s one of the most rewarding and proven investing tips.

Paying close attention to long-term moving averages and other widely tracked technical indicators such as the Relative Strength Index help investors gauge when the market might be nearing a near-term peak or trough.

This doesn’t mean investors should play the market timing game. The goal is to take some profits when the stock market grows euphoric and buy into selloffs, while staying invested through thick and thin.

Stay the Course

Calling a precise bottom or top in real time is next to impossible even for hedge funds run by veteran traders and Ivy League mathematicians and computer scientists. This means few others should attempt to play the all-or-nothing market timing game.

Instead, investors must take a simpler and more repeatable approach.

Market timing is even more dangerous because the best days and periods for the market often occur near the worst days, scaring away investors just before the next rally begins. Missing out on rebounds like the one we just had also cripples your long-term gains.

During uncertain times, investors should remember that “time in the market beats market timing.” 

Great long-term investors must buy into weakness, embracing near-term fears to seize fantastic buying opportunities across best-in-class stocks. If the stocks or ETFs you buy drop further, buy a little bit more (if you don’t need that money anytime soon).

Continued . . .

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A Five-Year Stock Market Microcosm

The past five-plus years have served as a compelling case study for why investors should stay invested amid market downturns.

Recent history also hammers home why investors should buy into weakness even if more pain comes in the short run.

Remember that investors are often most excited to buy stocks at levels that will soon be a near-term top and too nervous to pull the trigger at beaten-down levels that will mark a bottom (we all have horror stories on these fronts).

The Nasdaq has climbed roughly 110% since the start of 2020, with the S&P 500 up 85%.

These gains include the rapid COVID bear market, the prolonged 2022 bear market, and the huge selloff during the first quarter-plus of 2025.

All three selloffs, along with smaller drawdowns and market corrections along the way, represented wonderful buying opportunities.

Some might say they were only great chances to buy the dip in retrospect.

In response, ask yourself why you are investing.

Is your goal to build wealth over a 30-, 40-, and 50-year period, or is it to take home huge, quick winners?

Buying into weakness on best-in-class stocks and ETFs is a proven strategy to boost long-term wealth creation and bag quick, triple-digit winners.

Investors might have horror stories about lost decades of investing. Yet, even buying during those doldrums paid off eventually.

Everyone needs exposure to bonds, money market funds, and other asset classes. But there are few other ways to build wealth and beat inflation beyond investing in risk assets such as stocks and ETFs.

The S&P 500 has averaged an annual return of roughly 10%, showcasing long-term growth through ups and downs. The benchmark index has jumped 12% in the past 12 months, including the selloff between late February and early April and the new bull market.

No one knows what’s right around the corner on Wall Street and be wary of anyone claiming they do.

Instead, everyone should remain exposed to the stock market at all times, selling into strength and buying into weakness along the way.

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Good Investing,
Benjamin Rains

Ben is a Stock Strategist focusing on large-cap technology companies, consumer-facing stocks, and beyond. He's Editor of Alternative Energy Innovators and Marijuana Innovators, and invites you to sample the long-term Zacks Investor Collection for 30 days at a total cost of $1.

¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.


 

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