6 days Why markets are down today & advice [about volatility, inflation, stimulus, interest rates & unemployment] Reddit     

Today, $QQQ was down as much as -3.6%, $AAP down -6.5% at the open, $TSLA down -13% intraday, and $CCIV down -38%. I think the sell-off was due to to inflation fears. There’s a fear that huge amounts of fiscal and monetary stimulus from the Fed could lead to rising inflation and interest rates. Investors may be assuming that the Federal Reserve may raise interest rates to fight inflation. But here’s the thing, with so much unemployment, I think it’s unlikely that the Fed would move rates higher. However, this correction may continue due to exceedingly high valuations for large cap growth stocks.

Remember, you can’t control the markets, but you can control how you react to volatility. When volatility makes you anxious, think long term. Ask yourself this, “Will what is happening now matter in a year or two?” When investing, always consider the (A) The risk of losing money vs. (B) the risk of missing opportunity.

Do not be the person who does not have enough confidence to trade. As Babe Ruth says “Don’t let the fear of striking out keep you from playing the game.”

submitted by /u/TonyLiberty

· · ·

What is Market Insider?

Market Insider is a business news aggregator for traders and investors that proposes to you the latest financial markets news, top stories headlines and trading analysis on stock market, currencies (Forex), cryptocurrency, commodities futures, ETFs & funds, bonds & rates and much more. We do not create or publish our own content or copy full articles from other sites. Market Insider works with public RSS feeds of best business news websites, personal blogs and provides automatically generated list of financial news links directly referring to its sources.