Back to top

Image: Bigstock

How to Survive a Stock Market Sell Off

Read MoreHide Full Article

  • (1:00) - Navigating Volatility In The Market
  • (6:50) - What Are The Chances Of A Recession?
  • (14:30) - Are There Buying Opportunities In China and Pot Stocks?
  • (18:45) - Impact Of Rising Interest Rates: Bank and Housing Stocks
  • (27:50) - Episode Roundup: CNC, UNH, IIPR, BABA, NVDA, MU, PHM
  •                 Podcast@Zacks.com

Welcome to Episode #152 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to discuss the stock market sell off and what investors can do to survive it.

The Russell 2000, the index of small cap stocks has fallen 10% in the last month. The NASDAQ has also pulled back over 7% and the S&P 500 more than 6%.

With fear swirling and volatility picking up, what can investors do to soften the blows of the sell off?

Selling Off on Peak Earnings or Something Else?

There is a lot of uncertainty whether it is trade wars, tariffs, the mid-term elections or worries about peak earnings there are more than enough reasons to keep investors up at night.

But Kevin also thinks that the jitters could be due to doubt about the rate of growth. GDP just grew at about 4%.

Was that the best we’ll see this cycle?

Where to “Hide Out” During the Sell Off

One thing an investor can do is, basically, nothing.

But they can also look for safe haven areas.

1.       Insurance is holding up well including Centene and Unitedhealth Group (UNH - Free Report) .

2.       What about the pot stocks? Some have sold off in the past 5 days including Innovative Industrial Products (IIPR - Free Report) which is down 7% during that period.

What About Buying Beaten Down Stocks?

The cyclicals have gotten hammered, especially the semiconductors including NVIDIA (NVDA - Free Report) and Micron (MU - Free Report) . Is this a buying opportunity or is this peak earnings growth for the next few years?

The Chinese stocks are another group that is already in a bear market with some names down 40% or more.

Find out what Kevin thinks about some of the Chinese star stocks like Alibaba (BABA - Free Report) .

What else should you know about surviving a sell off?

Find out on this week’s podcast.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>
 

Published in