Editor's note: There's no room for mistakes...

The Federal Reserve has relentlessly hiked interest rates this year in an effort to quell today's high inflation. In fact, the central bank instituted its third consecutive 75-basis-point rate hike last week. But this aggressive strategy is weighing heavily on stocks.

That's why Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, says it's crucial for investors to know exactly what to look for if they want to survive this ongoing chaos...

In today's Masters Series, adapted from the September 21 issue of the Chaikin PowerFeed daily e-letter, Marc details how today's high inflation is hampering stocks... explains why this rampant market volatility could last much longer... and reveals the type of asset that investors should be looking for amid this ongoing chaos...

This Market Requires 'Perfect' Stocks

By Marc Chaikin, founder, Chaikin Analytics

This isn't an easy time to own most stocks...

As you know, inflation remains near its highest level in decades.

The U.S. Bureau of Labor Statistics released its August update of the Consumer Price Index ("CPI") a few weeks ago. It reflected an 8.3% year-over-year increase.

If the recent inflation rate were to hold, every $100,000 in cash in your retirement account would be decimated to just $42,000 in the next 10 years.

In other words, the data shows that inflation is crushing American investors. That's especially true for folks who are at or near retirement age...

Put simply, if that's you, sitting in cash or cash-like assets is destroying your wealth. And you're running out of time to recover those losses and live comfortably in retirement.

That's why the stock market is a great alternative. It's a proven way to grow wealth over the long run. And most times, it's a terrific way to maintain that wealth as well.

The problem is... a lot of stocks aren't rewarding investors right now.

In today's essay, I'll discuss why investors need to choose wisely when investing in stocks these days. And importantly, I'll explain one simple way to get the upper hand...

Not surprisingly, investors reacted with fury in response to the latest CPI update...

On September 13, the day of the CPI announcement, the S&P 500 Index plunged 4.3%. And the Nasdaq Composite Index tumbled roughly 5.2%. It was the market's biggest one-day drop since June 2020.

Of course, this theme is becoming all too familiar to investors...

The S&P 500 is down about 24% from its all-time high in early January. And the Nasdaq has lost around 33% since its November 2021 peak.

Now, there's no getting around the fact that the market is turbulent. But importantly, opportunities do exist...

For example, about a month ago, I detailed how the Power Gauge pivoted to "bullish" and "very bullish" on several market sectors. And that remains true today...

Despite the latest sell-off, the Power Gauge is still alerting us to a handful of sector- and subsector-level opportunities. And it's still pointing to incredible opportunities in hundreds of individual stocks.

On the flip side, sitting on the sidelines right now is like choosing to take intentional losses.

With that said, finding stocks with massive potential upside is only half of the equation – especially in today's volatile market...

Right now, you don't just want stock picks with the chance to make you a lot of money. You also need to avoid taking on any unnecessary risk.

One or two big winners aren't any good if you're bleeding cash in the rest of your portfolio.

In other words, your investment decisions don't just have to be good in today's conditions...

They need to be "perfect."

It sounds like an insurmountable hurdle. But it's not...

Remember, we have the Power Gauge on our side. It's the culmination of my life's work. And it's specifically designed to address this problem...

The Power Gauge analyzes each stock using 20 individual factors. They're divided into four discrete categories – Financials, Earnings, Technicals, and Experts.

Then, the Power Gauge uses a proprietary weighting of the 20 factors across the four categories to come up with an overall ranking for each stock. This combination of granular and holistic approaches ensures that we don't stumble into any unnecessary risks.

That's exactly the kind of approach this market demands. And in the end, I hope my message is clear...

Don't give up. And don't let sitting on the sidelines destroy your wealth.

Good investing,

Marc Chaikin

Editor's note: Marc says if you're keeping your money on the sidelines right now, it could be more at risk than at any other time in recent years. But you still have time to act...

You see, Marc recently joined forces with another investing legend for a presentation about a new financial crisis that could disrupt the stock market even more. But it's not the crisis that most mainstream analysts are warning about. That's why you must learn how to prepare now. Click here to watch the full replay.