This week the stock market had a mild reaction to negative unemployment data and the Federal Reserve’s desire to pump financial liquidity into the U.S. economy.
During times of economic uncertainty, institutional trading desks for insurance companies, hedge funds and college endowments, tend to trade stocks much more frequently. This sometimes leads to sharp sell-offs on Fridays followed by stock price increases Monday through Thursday of the following week.
However, stocks like Apple, Inc. (AAPL), Microsoft, Corp. (MSFT), Mastercard Corporation (MA), The Walt Disney Company (DIS) and Nike, Inc. (NKE) remain significantly above their March 2020 lows.
In this uncertain economic period it’s best to trade and invest in stocks that are members of the Dow Jones Industrial Average and the S&P 500, as most of them have seen an increase in Q1 top-line revenue.
Stay focused! Stay disciplined!
Tyrone Jackson, The Wealthy Investor
