Mark Matson was featured on ‘After the Bell’ that airs on the Fox Business channel. The stock market can be a tricky game to play because it’s always going up and down, making it hard to predict the best time to get the highest returns. Matson explains on the show how to seek the highest returns from your portfolio regardless of what the market is doing. During the recession, many people panicked in the market and ultimately left it because it was an uncertain time. However, those people are trying to wait for the perfect time to jump back in and the matter at hand is: there is no perfect time.
It’s understandable that investors can be leery of the market based on the 2008-2009 recession where we saw drops in numerous stocks but that time is behind us. Take for instance a time when the market is high, that doesn’t promise a safe venture to jump aboard; you have to be in it for the long haul and hold your ground. Whenever you decide to enter the market, don’t hesitate because there aren’t any guarantees that it will stay the same and that’s why you must think of long-term investments.
A strategy to avoid in your portfolio is going in on dividend paying stocks with high quality names because they turn your high capital gains into income. And you don’t want to pay income on your gains, you want to have capital gains so that you can extend them. Choosing stocks that represent a good market value is like having a lot of assets but a distressed price, which can be a good long-term share of that company. So you may want to build a portfolio that offsets the volatility in microcaps and which in turn may avoid the value in their short-term fixed income. Building a diversified, global portfolio is the game, not selling people what’s trending or popular.