A bear market may be on the horizon. Here’s what that means
Investors on Wall Street need a place to hide. The stock market’s skid this year has pulled the S&P 500 close to what’s known as a bear market. Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers.
news.yahoo.comWall Street poised for more losses after Dow’s 1,000-point thrashing
The Dow Jones industrial average is poised for a 150-point drop at the opening bell, a day after the blue-chip index shed more than 1,000 points, or 3 percent. “The other fear is that the cure for inflation, higher rates, could be as bad as the disease if they choke off growth and even lead to recession. With the exception of Japan’s Nikkei 225, which closed nearly 0.7 percent higher, all registered losses. Hong Kong’s Hang Seng Index tumbled 3.8 percent, while the Shanghai Composite index gave up more than 2 percent. Oil prices climbed higher in response, with Brent crude, the international oil benchmark, gaining 1.7 percent to trade around $112.75.
washingtonpost.comOptions contracts can be complicated. Use this strategy to trade like a professional
One of those strategies is called options trading. "It's best to think of options as an insurance product for stocks," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. But options can be a risky strategy for new investors without proper knowledge. Frequently, new investors do not engage the same strategies when trading options that seasoned investors do. Watch the video above to learn more about options contracts and what the pros do differently to increase their chances of profit.
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