The March quarter was filled with all sorts of things — from harsh winter weather to political items, and even the 2014 Winter Olympics — as well as weaker-than-expected guidance from a number of companies. All of that weighed on the stock market during the quarter, with most of the major indices in the red in late January.
The market rebounded in February and March, but during the last few weeks, most of those market gains have been erased. As we closed the books on the March quarter and opened them for the June one, the tale of the tape is not in the Dow Jones Industrial Average, nor the S&P 500, but in the Nasdaq Composite Index. Even there, however, the index is down only 1.49% in 2014, but there are far steeper declines in many of the all-too-recent need-to-own stocks that powered strong returns in 2013. Examples of those recent high fliers include online e-tailer Amazon.com (AMZN), social media giant Facebook (FB), light emitting diode chip and lamp company Cree (CREE), e-health companies such as Cerner (CERN) and cybersecurity companies like Imperva (IMPV).
One of the dangers that individual investors face is being caught, if not trapped, in the headlines, and that often leads to paralysis.
Read more about asking the right questions to head towards stock market profits at Eagle Daily Investor.