Growth stocks, particularly technology stocks, have been in favor lately, but how long can it last? When will markets change? If you’re concerned about a change in the markets, you’ll want to get FundX Chief Investment Strategist Jason Browne tips.
Jason talked about navigating changing market trends, current market conditions and tactical investing strategies on the TD Ameritrade Network last week. Click here to watch Jason’s interview.
Three ways to stay on track as markets change
“At FundX, one of the things we recognize is that markets change,” Jason said, and we have been navigating changing markets for nearly 50 years. Jason shared some of what we've learned along the way that can help you stay on track and avoid common mistakes.
1. Focus on what’s working now
"We see no reason to abandon growth stocks at this point, but we do acknowledge that that’s going to change at some point,” Jason noted. For now, though, stick with what’s working: “This is relatively narrow market that likes growth, and you don’t want to fight that.”
2. Stay alert to new opportunities
Changing markets can bring about new investment opportunities. For instance, “we are starting to see some other things, like small-cap growth and international small caps, do well, and that could give us the opportunity to be more diversified,” Jason noted.
3. Don’t try to predict future markets
Markets will change eventually, but there’s no need to try to get ahead of these changes. “Trying to forecast when or decide why changes are taking place often leads to mistakes," Jason noted.