- Mar 11, 2006
This market noob is confused... Biden is in, KXL is cancelled but all of the renewable energy stocks I follow are dropping... What gives? lol. They were all going through the roof last week and now they've done a 180.
As someone who has actively invested heavily and followed the market for many years .....I can honestly say I have no idea anymore how the market is going to move on a day-to-day basis. It used to be moderately easy to be fairly accurate at understanding daily moves, but I know I cannot anymore.
Right now we are in a HUGE seller's market in the US. What that means is money is cheap, but valuations for companies, especially US companies, are very high. They are high because foreign money is coming into the US for safety and investment and that drives up valuations. That is not a bad thing, or especially new, but it is one of the biggest seller's markers we have seen.
You add that to the fact of the unknowns of COVID, unemployment, divisive congress, economy sluggish, and small companies riding the coattails of enormous companies in their sector ---- it is hard to estimate movement.
I remain bullish on the market (I haven't sold a stock in 18 years), but for new investors looking for long-term growth -- unless someone knows a company very well, I would shy away from individual stocks and go with traditional mutual funds with low cost (think tracking funds), or ETFs.
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