WHEN IS IT A GOOD TIME TO INVEST?
Whether you’re a veteran to the stock market or only now becoming interested in buying and trading stocks, you might be wondering the same question: How much should I be investing right now? It seems like nobody knows what the future holds, especially with the current health crisis. However, expert investors agree on a few things, one of which is undeniable: We’re in a bear market environment. Now, the NewYork Stock Exchange building doesn’t put up a sign that says “bear market” when we begin experiencing one. Bear market is a much more flexible term (and has varying definitions among investors). It can apply to individual securities or commodities, and it is often applied when they experience a prolonged decline of 20% or more from “widespread pessimism and negative investor sentiment,” as Investopedia explains. This decline can be temporary or long term, and we say “bear market environment” when it seems like everyone’s going through it, such as during a recession. That is to say, until the widespread pessimism changes, the market is going to be very unpredictable — and you already know that, but hear us out! That might be good enough when determining how to invest. In bear markets, you can still turn a profit as prices fall. However, here’s the trick: You shouldn’t invest all at once.
Short selling, put options, and inverse ETFs can potentially turn a profit during bear markets, but let’s take short selling, for example. Short selling is when you make gains by selling borrowed shares and buy them back at lower prices. Let’s say you have an expensive stock — if you know the prices are going to drop, you could sell at the higher price, and buy again at the lower price. Of course, this is extremely risky. If you sell and the market rises instead of drops, then you lose money. That’s why it’s important to pace your investments. Invest in small amounts over time, and you won’t be as worried. Keep in mind that certain industries, such as airlines, may take awhile to see returns. From everyone at DuPont Wealth Solutions, we hope this advice helps you understand the bear market just a little bit better. Happy investing!
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WATERMELON AND TOMATO SALAD WITH TURMERIC OIL
Inspired by BonAppetit.com
INGREDIENTS
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1/4 cup virgin coconut oil
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4 cups seedless watermelon, diced into 1/2-inch pieces
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1 tsp peppercorns, coarsely crushed
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2 medium heirloom tomatoes, diced into 1/2-inch pieces
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1 tsp coriander seeds, coarsely crushed
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8 oz mild feta, diced into 1/2- inch pieces
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1/2 tsp cumin seeds
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Flaked sea salt
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1/2 tsp ground turmeric
DIRECTIONS
1. In a small saucepan, heat coconut oil, peppercorns, coriander seeds, cumin seeds, and turmeric for about 3 minutes or until fragrant. Let cool slightly but do not let coconut oil solidify.
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2. In a large bowl, place diced watermelon, tomatoes, and feta. Drizzle with oil mixture and finish with a dash or two of salt.
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