Turbulent Stock Market: Strategies for Navigating Volatility in 2024

Understanding the Turbulent Stock Market

Given my previous market commentary, it echoed the sentiment many investors currently hold: This Stock Market is NOT FUN!

That is, the problem is that we are in a period of tightening with rolling corrections. The explanation that follows will explain why…and the best way to navigate this tricky situation.

Market strategy

Some market commentators pointed to further stock weakness Wednesday morning due to hotter-than-expected CPI inflation data. Yes, annualized core inflation has changed since the last reading of 3.2%. This is because month-on-month readings rose 0.3% against an expectation of 0.2%.

But a broader CPI inflation reading (including gas and food…which is kind of significant) that declined from 2.9% to 2.5% on an annualized basis.

Bond investors were not worried about this as the 10-year remained above recent lows around 3.6%. However, CME’s FedWatch analysis showed a dramatic change to only 25 cuts at the Fed’s meeting on 9/18. Now they show an 85% probability of that and only a 15% chance of crossing 50 basis points significantly. Note that this was almost a dead heat just a month ago.

So if CPI data isn’t to blame for the sell-off…what caused it?

My money is riding on Tuesday night’s presidential debate with a majority of polls showing Harris as the winner. This was well anticipated by most scholars. The point is that it makes this election more complicated because in the end it really comes down to a few swing states.

This presidential uncertainty leading to selling is nothing new for markets. It has happened many times before. The good news is that regardless of the candidate, spending goes up even more after the election is fixed.

Interestingly, -1.61% intraday decrease fo

Average: 50 days (yellow) @ 5,508 > 100 days (orange) @ 5,399 > 200 days (yellow) @ 5,167

Some trade unions are quiet. Some are aggressive and aggressive. This is obviously the answer.

In addition, it can take a “rolling correction” property. That’s where the changes in sectors are so intense that each team experiences a period of significant disruption equal to 10% growth. But since it’s only two sectors at a time, the market as a whole doesn’t move much.

Then as one team fixes their watches…they ring and the pain of rolling cleaning rolls off onto another team.

This explains the typical recurrence of a great mixture of red and green arrows. often quite the opposite.

As I have shared with you many times in the past…you are not following this zone change. That’s like a dog chasing a car…never catching.

Proven Outperformance Against the S&P 500

It’s best to just stand there and let the waves wash over you. If you had good stocks to start with…then they will eventually stabilize and bounce off any weakness.

As always, the key to good stock ownership is turning to our POWR Ratings system where computers do the heavy lifting. All 118 items are calculated daily for 5,300 stocks. The best are given an A rating which has resulted in an annualized return through 1999 of +28.56%.

Which POWR Ratings stocks do I recommend today? Read below for the answers…

Leveraging POWR Ratings for Stock Selection

Explore my current portfolio of 11 stocks with outstanding gains I have made in our exclusive POWR ratings model. (Almost 4X better than the S&P 500 going back to 1999).

All of these handpicked picks are all based on my 44 years of investing experience watching bull markets…bear markets…and everything in between.

And now this portfolio is beating the stuffing out of the market.