This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How Investors Can Beat the Winter Blues

Stocks in this article: SPY

NEW YORK (TheStreet) -- In addition to being personally disruptive and annoying, the harsh winter weather is having an impact on economic activity. Recent reports on jobless claims, job creation and leading economic indicators have all been impacted by the repeated snow storms and severe weather that has plagued much of our nation.

  • Jobless claims have fallen more than anticipated. The consensus agrees that this is weather related.
  • Job creation has been suppressed. The conventional wisdom says that this is weather related.
While the above two points may seem positive and have bullish implications -- they'll revert to the norm after the weather improves -- but they have had a real drag on economic growth.
  • As a result of bad weather, Q1 2014 GDP growth will likely be revised down.
  • As weather moderates, even if it's just briefly, expect a spike in jobless claims as a result of the backlog.
  • Unemployment figures could uptick later in February, surprising investors.

Investors can beat these winter blues by remembering that although the economic effect of the severe weather is real, it is also temporary.

As such, investors should not panic or fall prey to fearmongers who will be quick to blame the implementation of Obamacare, Emerging market instability or Fed policy as the root cause of the downturn.

What should investors be concerned about?

  • Staying focused on their long-term objectives.
  • Reviewing their portfolio holdings on a monthly basis to ensure that each investment still fits the goals it was meant to fulfill.
  • Being emotionally detached. Don't fall into the trap of "I'll hold onto the stock until it gets back to what I paid for it."
  • Understanding that the lack of volatility in 2013 was abnormal. Ergo, expect more market volatility and embrace it.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs