Enlightenment - A Herold & Lantern Investments Podcast

Dare We Time the Market?

September 07, 2021 Keith Lanton Season 3 Episode 33
Enlightenment - A Herold & Lantern Investments Podcast
Dare We Time the Market?
Show Notes

September 7th, 2021, Season 3 Episode 33

"Enlightenment" - A Herold & Lantern Investments  Podcast featuring Mr. Keith Lanton, President.

In this episode, Keith begins by making a blanket statement that the technique of attempting to time the stock market through extrapolation of future price movements tends to have low success rates and destroy wealth. One of the major reasons for the systematic failure of this technique, he states, is because the market is front-end loaded, and the majority of loss comes within the first 40 days of a bear market. It is a more prudent technique to, instead, stick with a diversified long-term plan. Keith subsequently goes on to discuss Barron's market projections, which, for the time being, are neutral with an upward bias. Barron's states that we may be approaching a correction, but not a bear market. The prospect of a market correction has caused some apprehension due to (1) the possibility of the Federal Reserve tapering and (2) the fact that the Biden administration may hike personal and corporate tax, which would affect earnings. In other news, BMW has said that its chip shortage is expected to last six more months, and, as of last week, the S&P 500 was up a striking 21% for the year. Keith then notes that there is a very large percentage of the population that is doing its own trading on platforms such as Robinhood and Fidelity, and, as such, people need to gain a better understanding of how these platforms work. Keith concludes the podcast by discussing Barron's projections that the biotech sector might be next in line for an uptick, citing a few new companies with innovative new experiments and technologies in areas such as depression treatment, genetic testing, and T-cell treatments.

We hope you enjoy the show and share it with colleagues and friends.

Press interviews or market commentaries, please contact Keith or Sal Favarolo directly at 631-454-2000 to schedule a time.