Part 7/9:
During Friday's sell-off, these strategies kept the author's positions relatively safe, allowing for potential gains when the market stabilizes. The message: technical analysis doesn't predict headlines but measures risk, enabling better decision-making under stress.
Maintaining Perspective Amidst Headlines
When headlines scream "trade war," it's crucial to evaluate their actual impact on business fundamentals. Most of the political noise momentarily affects sentiment but doesn't immediately alter earnings or corporate health. The author suggests applying a simple checklist:
Are earnings still growing?
Are consumers still spending?
Is innovation still advancing?
If all answers remain positive, then the recent volatility is a discount, not a disaster.