Outside it's feeling like summer, but on the stock market? It's kinda like mid-February. If you're following the speculative small caps, that is.
What could change the trading climate?
The Fed's big meeting Wednesday.
Indeed, everyone wants to forecast what will happen: Will the Fed cool its dovish stance? Will it warm to the idea that inflation isn't so transitory after all? Or will Fed Chief Jerome Powell say we should let prices run hot for a while and, you know, sweat it out until things chill a bit.
We can't predict the weather -- or the Fed -- but we can give you some advice on how to handle the stormy market. Here's the best of the week from Jim Cramer, Paul Price, James "Rev Shark" DePorre, Christopher Versace and Peter Tchir.
Jim Cramer: This Is a Market of Stocks
Most people simply refuse to recognize that we have market of stocks, says Jim Cramer. Why? Because they've been pretty much brainwashed into thinking that they should be in index funds. But while it's true that really rich managers are so big that they can only be trading the stock market, the smaller investors don't have to invest that way. They can avoid the messes on some parts of the market and look to stocks that are favored and can stay favored, says Cramer. And this is important to know as the Fed meets later on Wednesday.
Here's Cramer's take on how to shop for stocks right now.
Peter Tchir: Are Bonds a Warning Signal to Stocks?
As of Monday, the 10-year yield had gone from 1.63% to 1.45% in less than two weeks. So, as Treasuries rally, we're hearing some chatter that lower rates should be treated as a warning sign that the economy is about to slow down. But, is it? Real Money Pro columnist Peter Tchir tackles this question.
Paul Price: This Plan Could Help Your Kid Retire
Unlike politicians who are throwing money at families amid the COVID-19 pandemic, Real Money Pro columnist Paul Price says he has a plan that could answer real-world financial insecurity problems for the long run. Reminding readers of the old saying of "Give a man a fish and he eats for a day, teach him to fish and he can eat for a lifetime," Price argues that the current government programs do little for the nation's little ones over the long run.
So, here's his idea for helping kids now and "paying" them later.
Chris Versace: Look Beyond Sectors When Investing
Real Money Pro columnist Christopher Versace had spent more than a dozen years in Wall Street equity research departments covering machinery capital goods, homebuilders and building products, and the mobile phone business. But, he says, he found himself seeing shortcomings of sector investing. Instead, he looks at themes when putting together portfolios.
Here's how Versace advises approaching investing.
Rev Shark: Here's the Secret to Good Trading
Easy money is hard to come by. The reality is that great trading is a grind over a long period of time, says Real Money columnist James "Rev Shark" DePorre. Successful traders work on cultivating grit and determination that will keep them going when the market goes through an inevitable down cycle. But the problem is staying motivated and keeping goals.
DePorre tells how to stay motivated over the long run.
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