3 Ways to Make Money When Stocks Fall

Even with stocks reaching new highs, stock market fear is spiking and that makes for sleepless nights for investors. I've found three ways to win when stock market fear jumps. ✅ 7-Day Free Trial plus this $50 coupon off Seeking Alpha Premium! Lowest price online https://mystockmarketbasics.com/SeekingAlphaDiscount Stocks in the S&P 500 closed at 4839 Friday, its first closing high since January 2022. It wasn’t without making investors sweat it out over the last couple of weeks in which big 1% moves have become the rule rather than the exception. The market index tumbled more than 2% in the first week of the year alone. The VIX volatility index, the market’s fear gauge spiked 20% in the last week to its highest since early November. I still believe this year will produce even higher prices, especially as we get into the Fed rate cutting cycle, but the ups and downs can kill your motivation to invest and stick with your favorite stocks. Fortunately, there are three ways to win the stock market game when fear causes price swings. First, Volatility is just how much the market or a stock moves up or down in a given period, a gauge of stock market craziness. The Volatility Index, or VIX, is the market’s expectation for volatility over the next month, so how crazy investors believe stock prices will be. The VIX is based on futures prices so gives us a representation of how much fear there is in the market going forward. While you can’t invest directly in the volatility index, you can invest indirectly through futures, options and ETFs, betting whether actual volatility will be higher or lower than expected as well as using it to reduce the risk in your own stocks. Since the VIX Volatility Index, that fear gauge, is historically inversely correlated with the stock market, meaning when stocks fall the VIX typically goes up and vice-versa, I’ll show you the data behind that later but using some of these investments can help you offset any short-term losses in stocks with a gain. Quick-Start Guides! FREE Step-by-Step Guides to Get Started Fast! ⏩ Make an Investing Plan Right for YOU! 5-Minutes to a Personal Investing Plan https://mystockmarketbasics.com/quick-start-plan ⏩ Open an Investing Account. How to Open a No-Fee Investing Account and Start Buying Stocks in 5-Minutes! https://mystockmarketbasics.com/quick-start-investing ⏩ Easy, Step-by-Step to Analyzing Stocks! 5-Minute Guide to Picking the Best Stocks! https://mystockmarketbasics.com/quick-start-stocks 🤑 Get The Weekly Bow-Tie - my FREE weekly email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie My Investing Recommendations 📈 Check out the stock simulator and Get up to 12 FREE shares of stock worth up to $10,000 when you open a Webull investing account with any deposit! 🤑 https://mystockmarketbasics.com/webull 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount ✅ FREE Report! See the top five stocks in my portfolio, the five stocks I'm buying for the next 30 years! https://mystockmarketbasics.com/motleyfool Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through dividend stocks, investing and ways to make more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #stockmarket #stocks #stockmarketnews