Let me give you a minute to catch your breath after such a whirlwind start to the New Year on Wall Street.
Better? Good.
Now, let’s recap what stocks did in the first full week of 2015 trading. The Dow Jones Industrial Average was down 462 points on Monday and Tuesday. On Wednesday and Thursday, it was up 537 points. Then on Friday, it was down again – by nearly 200 points.
The net result was basically a flat week. But volatility has certainly returned to the market.
What does that mean for your portfolio? Nothing … yet.
The Volatility S&P 500 Index (VIX) – a.k.a. the “investor fear gauge” – is lower than it was through most of December. December volatility has had a similar net effect to this week: stocks are essentially flat in the last month.
The daily seesaws can be exhausting and a little scary. But if you pay closer attention to the intermediate term than the very short term, you’ll preserve your sanity and prevent yourself from selling out of stocks that you like over the long haul.
As I’ve written in this space repeatedly, there have been plenty of short-term pullbacks and bouts of volatility over the past two years. And yet the net result is that stocks have risen nearly 40%.
I don’t expect them to continue rising at that rate. But I don’t think a pullback is imminent either. Once the market breaks free of its current back-and-forth, chances are stocks will resume their record climb.
When that happens, you’ll want some fresh ideas for investments to add to your long-term portfolio. Here are 10 our team of analysts came up with this week at Wyatt Investment Research:
The Best REITs to Own in 2015– REITs were some of the hottest stocks of 2014. But with rising interest rates looming, what can we expect in 2015?
Top Dividend Picks from the Insurance Industry– Finding dividends in the financial industry isn’t easy. But there’s one part of this industry that does continue to deliver.
The One Energy MLP Worth Buying– Plummeting oil prices have largely crushed energy MLPs. Except one.
No Matter Where Gas Prices Go — You Get Paid-Gas prices have been moving down all over the country thanks to fluctuations in crude prices. So finally, average Americans are getting a little relief at the pumps. However, one group of folks are taking it one step further — and letting big oil companies pay them to fill up.
Why Investors Fear the Deflation Threat– Is it rational to fear deflation? It depends on the “kind” of deflation we’re talking about.
Get Connected with this Small-Cap Cloud Stock– I like companies that are small enough to offer a ton of upside potential, but not so small that they’re completely overlooked by Wall Street. LogMeIn (Nasdaq: LOGM) is one such gem.
Index vs. Actively-Managed Funds in 2015 – Which is the best investment strategy in 2015? It’s complicated.
The Five Best Dividend Stocks to Buy in January– Looking to boost your income in 2015? Here are the five best dividend stocks to buy in January.
Why Interest Rates Won’t Rise in 2015– Rising interest rates and fixed-income opportunities aren’t a given in 2015.
Will the Latest Greece Debt Problem Affect Your Portfolio?– Greece debt is back in the news. Will it hold U.S. markets hostage the way it did in 2011? I doubt it.
As always, thanks for spending the weekend with us. We hope to see you back at WyattResearch.com next week.