U.S. stocks may have gotten a jolt with Great Britain's decision to leave the European Union, but they remain in a 'sideways' market nonetheless, said Craig Ferrantino, president of Craig James Financial Services. 'We saw a nice run up into the Brexit decision and now the market is giving it all back,' said Ferrantino. He added that investors never seem to panic when there is volatility on the positive side, yet when they encounter volatility on the negative side they 'get frozen and want to do something, and usually they do something detrimental to their portfolios.' Ferrantino said a sideways market impacts impatient investors the most. In his view, the longer the sideways market continues, the more likely an impatient investor will switch to another asset, perhaps losing out on possible upside when the direction becomes clear. 'Research shows most individual investor losses come from selling at the wrong time and investing at the wrong time,' said Ferrantino. Outside of impatient investors, retirees greatly feel the effects of a sideways market. Volatility is terrible for a retiree, especially if they are taking money from their portfolio or taking out their required minimum distributions, according to Ferrantino.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Video
What's the Difference Between an IPO and a Direct Listing?
Do you know what the difference is between an IPO and a direct listing? TheStreet breaks it down for you in 60 seconds.
Replay: Jim Cramer Zooms in Jerome Powell, Adobe, CBS and Viacom
Jim Cramer takes a look at whether or not Jerome Powell's job is safe, Adobe's earnings and whether or not we're truly in the 'golden age of creativity' as Adobe's CEO claims, and finally, whether or not now is the time for CBS and Viacom to merge.
Canopy Has Some Built in Advantages Over Cannabis Competitors
Canopy Growth has the backing on a $35 billion company, a luxury its competitors can't claim.
Jerome Powell: Digital Currencies Are in Their Infancies
Jerome Powell talked about Facebook's Libra, cryptocurrencies and why he doesn't think that digital currencies are ready to overtake currencies.
NYSE Trader's Instant Reaction to the Fed Decision
Matthew Cheslock, a trader at Virtu Financial, breaks down what he's thinking about the Federal Reserve's decision to leave interest rates unchanged.