Listen to the audio version of this article (generated by artificial intelligence).
A streak ended this week as stock market volatility increased… Learn how successful investors manage risks, protect gains, and profit from market volatility.
We are in rare air.
According to Dow Jones Market Data, the S&P 500 entered Friday at a high level Nine consecutive weeks of weekly gains. This has happened only four times in the past 40 years (1989, 2004, 2023, and this year).
When I sat down to write on Friday morning, the market looked poised to end the week higher again, which would have been notable 10 straight weeks of gains – A streak that has not been achieved in 40 years! But the market has turned south, and as I write this on Friday, it looks like we are not going to get there. By the time you read this, the market’s final verdict for the week will have been out.
Either way, this statistic is staggering. The last time the S&P 500 index achieved a series of… 10 or more consecutive positive weeks It was a The tour lasted 12 weeks and ended in December 1985.
I was skeptical of these market statistics at first. This has certainly happened again within the last 40 years…
During the dot-com boom? During the post-coronavirus rebound?
no.
Despite dozens of bull markets, corrections, and spikes, it seems like it’s been there No 10-week streaks since 1985.
To put that in perspective, here’s what was happening the last time investors saw a series like this:
The next number one song was “Say You, Say Me” by Lionel Richie.
NFL quarterback legends Dan Marino (Miami Dolphins) and John Elway (Denver Broncos) They encountered each other for the first timewith Miami winning 30-26.
“Rocky IV,” starring Sylvester Stallone, was the top movie of the holiday season, but “Back to the Future” was the highest-grossing film of the year.
Even a nine-week streak, given how rare it is, can lead some investors to declare that it is time to sell – and that the market must be waiting for a difficult correction.
But the bigger story isn’t whether the market will end this week higher or lower.
It’s how quickly things can change.
One day, investors will celebrate new highs. The next day, they’re worried about President Donald Trump’s new tariffs, rising Treasury yields, geopolitics, or the latest economic report.
The market seems to be able to shift from optimism to pessimism – and back again – within a few hours.
I would call this environment unusual – after all, there are always ups and downs. but According to DataTrekThe S&P has become significantly more volatile in recent years. Historical baselines have nearly doubled due to unprecedented macroeconomic shocks, intense concentration in big technology companies in the indices, and the rapid rise in algorithmic trading.
There is every reason to believe that the ride has become more rugged.
But volatility is not always bad.
When volatility is your friend
For decades, investors have learned the same basic lesson: Find great stocks and hold them for the long term.
There is certainly wisdom in this approach. Louis Navellier’s gains are close to 5000% nvidia (NVDA) Attests to the value of holding a high-level position for a long time. Meanwhile, Amazon (Amzn), and Microsoft (MSFT) He ultimately rewarded the patient investors with life-changing gains.
But given today’s increased volatility, market movements are coming faster than ever before.
Information travels at the speed of a click. Algorithms dominate trading. Individual investors can respond to market news in seconds and place trades on their phones. Entire sectors can rise – or collapse – within a few days. What previously took months now happens in hours.
In many of these cases, volatility works to our advantage.
A great example is semiconductor tower (TSEM)Which Lewis recommended in his book Accelerating profits Not before three months. Since his recommendation, the stock has nearly doubled.
Doubling your money in less than three months, in mid-cap stocks worth more than $26 billion, can make any investor dizzy.
Even with this acceleration, The stock is still below Lewis’s purchase price. It is believed that he has the ability to rise to a higher level.
But finding great stocks is only half the battle.
Trade management challenge
The other half is knowing how to manage your positions when the other kind of volatility inevitably occurs — the kind that sends our portfolios into the red.
Most people will hang on and hope for the best. Is this the best we can do?
While Lewis remains very optimistic about the stock’s long-term outlook, he also believes the coming months could lead to a sell-off that surprises many investors.
This is what makes the upcoming event interesting.
Lewis really knows how to find winning stocks. His track record speaks for itself.
From Nvidia to countless other market leaders, Lewis has spent decades refining a system designed to identify companies that have the earnings growth, sales growth, and institutional demand needed to deliver huge gains.
The hardest question is often what comes next. If the stock goes down on any given day, how should you react?
And perhaps more importantly, how do you know whether you should hold your position for the long term or step aside to protect your profits?
That’s where TradeSmith CEO Keith Kaplan comes in.
For years, Keith and his team have developed tools designed to help investors make better decisions about timing, risk, and portfolio management.
Lewis’ focus is on what to buy, and Keith’s focus is on helping investors decide when to act. Together, they believe they may have been created A powerful combination for today’s market environment.
One side of the equation is designed to uncover potentially exceptional stocks.
The other is designed to help investors navigate the increasingly volatile path these stocks often take.
At a special event next weekLewis and Keith will explain how their approaches complement each other, why they believe this partnership arrives at just the right time for investors, and how they use this shared framework to identify opportunities in the current AI-driven market.
On June 10thy At 10 a.m. ET, they will release what they think it could be The most significant – and most profitable – upgrade to the TradeSmith platform since its founding.
You can sign up for this event by clicking here.
The market’s weeks-long streak of gains may be over, but you can be sure you’re staying on the right side of volatility.
Enjoy your weekend,
Luis Hernandez
Editor-in-Chief, InvestorPlace
