Don’t let your emotions keep you out of the market

Longtime readers know that one of the three pillars I follow in all my investment newsletters is education. And the last two weeks could provide some great teaching material for a long-term investing class. In the simplest terms… don’t make emotional investment decisions. [Header]( Don’t Let Your Emotions Keep You Out of the Market Dear reader, The last two weeks could provide some great teaching material for a long-term investing class... The S&P 500 suffered its worst weekly loss in more than a year. It also saw its worst first week of September in 70-plus years. As a result, the headlines and talking heads on TV were calling for more selling, and fear started to spread. The CBOE Volatility Index (VIX) – also known as the fear index – spiked more than 60% in just four days last week. [MMI 9-14] But things have turned this week. The S&P 500 closed up every single day for an overall gain of 4% and is now trading less than 1% from its all-time high. So it’s no surprise that the headlines and talking heads have changed their tune – and everyone is bullish once again. Now, investors who panicked last week are wondering how to get back into a market that’s on the verge of a major breakout. They’ll be able to... but at much higher prices. Instead of holding steady and not allowing the one week’s volatility to change their long-term strategy, they let emotions take control and lead to poor decision making. Longtime readers know that one of the three pillars I follow in all my investment newsletters is education. That’s why I’m sharing this. It’s likely that some readers unfortunately fell victim to the emotional roller coaster of the market last week. But we can learn from our mistakes… One of the greatest lessons I have learned over the years is to not make emotional investment decisions. It’s easier said than done. But please try to recognize when you’re in an emotional state. I promise it’ll save you the unnecessary headaches down the line. Now, let’s look ahead. This upcoming week will be historical. On September 18, the Federal Reserve will cut interest rates for the first time since 2020. The majority of folks (greater than 55%) still favor a 25-basis-point (0.25%) cut, but it’s close enough now that a 50-point (0.50%) cut isn’t out of the question. I expect we’ll see some big swings in the stock market this week simply based on what we’ve seen the last two weeks. Also, with the S&P 500 near a high, any disappointment could lead to some big selling. On the flip side, bullish news could help stocks break out to record levels and start a new uptrend. I won’t even try to guess where the week will end. But I do know that I want to be long stocks heading into the end of the year. Now, let’s recap everything we talked about in Market Insights this week… Monday: Nuclear energy was considered a "lonely" investment strategy just a few years ago. But now, it's clear that this trend isn't going anywhere. And there are a few ways to take advantage of the potential upside. [Click here to read Nuclear Energy Is Becoming More Mainstream](. Tuesday: A lot of folks might think tech stocks have led the market higher this year. But they'd be wrong. In fact, one "boring" sector has claimed the top spot. And that's something to watch in the final months of the year. [Click here to read The Hottest Trade of the Year](. Wednesday: Many investors would argue that we’re in the midst of a sizable market pullback. In reality, the S&P 500 is trading just 3% below its all-time high. So on this week's podcast, Tim Bohen and I discuss what’s going on in the market and how to take advantage of it from two different perspectives. [Click here to read How Do You Play a Market Pullback?]( [STEP 16]( Thursday: There are few guarantees when it comes to the markets. But one thing traders can count on is that when the Federal Reserve is about to make an interest rate decision, volatility is a near certainty. And according to Imre Gams, there's one market we should especially pay attention to heading into the upcoming Fed meeting. [Click here to read Watch This Fund Heading Into the Upcoming Fed Meeting](. Friday: We’re less than one week away from the Federal Reserve’s September 18 meeting. It’s a near certainty that the central bank will lower interest rates for the first time since early 2020. But before they decide how aggressive they’ll be, the Fed received two more important economic readings. [Click here to read This Is How Inflation Is Hitting Your Wallet](. Here’s to the future, [Matt McCall signature] Matt McCall Editor, Market Insights © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. Past performance does not indicate future results. All investing carries risk. 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