How to buy stocks on the brink of a bear market

It seemed like everyone was in a buying mood on Friday, except Elon Musk. The Dow Jones Industrial Average broke a six-day losing streak, the Nasdaq Composite turned in its second positive session in a row, and the S&P 500 was up over 2%, a small step back from the brink of a bear market, ending the week 16.50% off its 52-week high. But any single-day stock gains in this market are tenuous. The Dow was down for its seventh-consecutive week for the first time since 2001. “We saw the…

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How the stock market ‘fear index’ works

The volatility index, also known as the VIX, essentially takes a reading of the stock market’s blood pressure, measuring investors’ fear. The VIX can spike when investor concerns are heightened by events like the raising of interest rates by the Federal Reserve or the Covid-19 pandemic. “It’s just a unique tool that we can actually quantify that [concern],” Lindsey Bell, chief markets and money strategist at Ally Financial, told CNBC. The VIX is a forward-looking index that weighs volatility based on trading in S&P 500 options. “It’s measuring implied volatility…

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Why Apple shareholders shouldn’t be too worried after the earnings selloff

If you are an Apple shareholder who wondered after last week’s stellar earnings report why the value of your stock holding was going down rather than up, the reason given — that chip shortages will weigh on the short-term outlook — may not seem good enough. For a trader looking at every short-term opportunity to move portfolio money to where the next quick buck is likely to be, it doesn’t take more than that “sell on the news” headline. Longer-term investors, though, might want to consider a recent fact about…

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