How to Trade a Volatile or Down Stock Market
Caution: Rough times may be ahead
Following Wednesday’s CPI data, markets were down for a third straight day. No one is hitting the panic button yet, and there's likely isn't any reason to.
A 30% crash like the one we saw in March 2020 is extremely unlikely. But because of the great returns from the past year, the market is likely to be choppy for the foreseeable future.
Increased volatility, or even a market that is down for a prolonged duration, can be a way to make money if you know how to. If there’s a way to make money, wall street has a mechanism for it.
With the threat of increased inflation and a less smooth market, here are some ETFs to consider.
Inflation
First, some info on my new favorite subject, inflation.
Inflation has been in the news a lot lately, it seems almost every day you hear about it.
But for good reason. CPI data was released Wednesday (5/12) and it wasn't good. The Consumer Price Index was up 4.2% from a year ago, beating economists expectations of 3.6%, and was up 0.8% from last month, also beating expectations of 0.2%.
Core CPI, which excludes energy and food prices was up 3% year-over-year and 0.9% on a…
