Don’t Let 'Doomscrolling' Derail Your Investing

Editor's note: With all of the fear and noise surrounding the market, it's easy for investors to be scared out of investing. But according to Pete Carmasino, chief market strategist of our corporate affiliate Chaikin Analytics, staying on the sidelines is the wrong move. In this article, adapted from the free Chaikin PowerFeed e-letter, Pete explains why opportunities still exist in this market – and how the Power Gauge can show investors "where" to find them...

With all the noise about tariffs and politics dominating headlines, it's hard to get a clear picture...

We tend to read negative news. Then, we read some more. And then, even more after that.

The mainstream media often feeds into our cravings as well. Each headline is worse than the last. And they're all designed to evoke shock, outrage, and fear.

As such, it's easy to "doomscroll" through all the negativity.

As we go further into 2025, the media's dire warnings about President Donald Trump's policies are louder than ever. Tariffs, deportations, democracy at risk... the headlines are full of this stuff.

For us as investors, doomscrolling through it all can have serious repercussions...

Doomscrolling gives us all sorts of reasons to not invest. But if we sit on the sidelines too long, we could miss out on the types of returns that our portfolios need right now.

After all, just sitting in cash means we're missing potential opportunities... even if the markets are volatile.

Opportunities Still Exist Amid Market Uncertainty

To be sure, the financial world is full of uncertainty today...

The broad market S&P 500 Index is still down 8% from its all-time high in February. And year to date, it's down about 4%.

Meanwhile, the tariff situation is constantly evolving. And potential trade deals are still in the works. So it's hard to predict exactly what will happen next.

Remember, we're active investors. We may not have control over global trade policy or the next executive order. But we do have control over our investment decisions.

We can see the issues at hand and navigate around them.

For example, the financial media is afraid that Trump's tariffs will destroy the economy. But savvy investors are following the sectors that may thrive under these policies.

In April, financial-services giant JPMorgan Chase (JPM) published a report stating the effective U.S. tariff rate has risen from 2.3% in 2024 to 23%. This creates both challenges and opportunities...

Some automakers are already adapting to the new tariff environment. Nissan Motor is scaling back production of its Rogue SUV in Japan. And Honda Motor (HMC) is considering shifting more production to the U.S.

And with the help of the Power Gauge, we can find areas of opportunity...

The Power Gauge is a tool we use at Chaikin Analytics for analyzing the market. It gathers investment fundamentals and technicals into a simple rating of "bullish," "neutral," or "bearish."

And our industry ranking clearly indicates which corners of the market we should focus on. In other words, it shows us "where" to look.

As the screenshot from our system below shows, the Power Gauge is pointing to these top 10 industries...

Digging deeper, we can then focus on "what" specific opportunities to buy. And the technical indicators we use tell us "when" to act.

In short, these top industry groups are where the institutions are fishing for profits.

The "smart money" on Wall Street is busy searching for companies to buy in the middle of this turmoil. Some stocks are set to gain from rising domestic manufacturing... or even enhanced border-security initiatives.

Folks, the Power Gauge doesn't read the headlines...

Our system doesn't factor in what the media says. It doesn't know that tariffs are being imposed on foreign goods.

The Power Gauge simply looks for strong stocks in strong industries.

Remember, we operate in a "market of stocks"... not just a singular "stock market." And by using the Power Gauge and following our process, we can thrive in any condition.

In the end, my point is simple...

Whatever system you use, don't doomscroll. And don't use it as an excuse to not invest.

Good investing,

Pete Carmasino

Editor's note: Marc Chaikin warned his subscribers of this year's market crash nearly two weeks before it unfolded... And this story is far from over. Beginning this Friday, investors who still aren't prepared could be heading straight toward financial disaster. But with Marc's "rapid-fire" strategy, investors can position themselves to double their portfolios while others are left behind. Learn how to prepare before Friday right here.