When It Comes to Investing, You Need to Avoid 'Doomscrolling'
Doc's note: Every day, the news seems dire, whether it's about the markets or the overall state of the world. And while the world isn't as "doom and gloom" as the media makes it out to be, lots of folks get caught up "doomscrolling."
As Pete Carmasino, from our corporate affiliate Chaikin Analytics, explains, paying too much attention to the negativity can hinder your investment success...
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 one. And they're all designed to evoke shock, outrage, and fear.
As such, it's easy to start "doomscrolling" on and on through all the negativity.
As we near the end of 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...
But 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 an October report, financial-services giant JPMorgan Chase (JPM) stated that the effective U.S. tariff rate has risen from 2.3% in 2024 to 15.8%. This creates both challenges and opportunities.
Some automakers have been quick to adapt to the new tariff environment… Honda Motor (HMC) announced it would move 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 system that looks at 20 factors to determine which stocks are buys and which are sells.
Put simply, our industry ranking provides a clear sign of the corners of the market we should focus on.
In other words, it shows us "where" to look.
And the below screenshot from our system shows these are the top 10 industries right now...
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 rise from growing 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: Today's historic market is causing a massive rotation of capital among the "smart money"... giving folks a rare opportunity to capitalize using a rapid-fire, short-term strategy that will be critical to making the biggest potential profits over the next 12 months and avoiding the biggest losses.