*This blog post is my personal opinion and for education purpose only and may contain affiliate/referral links.
The stock market has seen a few ups and downs this year, but despite the fluctuations the major indices are still up. The last quarter may be pivotal to what the stock market may usher in year 2022. This article is a short post on some potential stock market strategies that an investor may look at to prepare for the last quarter of 2021.
What are your options in the last quarter of 2021
Because the last quarter is almost upon us, It makes sense to plan a strategy this early. The idea behind this strategy is to buy stocks as they are down and to hold or sell them when they are up. This strategy is simple but it is not always the case. To accomplish it requires discipline and a clear plan. My plan for the last quarter of 2021 will focus on the Nasdaq 100, growth stocks and dividend stocks. I believe this index has the most upside potential at the end of 2021 but also volatile so always do your due diligence. I am also including a portion on growth stocks if your risk is more aggresive, and lastly some dividend stocks too for income.
If you’ve followed my stock picking strategy in the past, then you know that I tend to stay away from the technology sector and I consider consumer staples and utilities stocks among my best growth ideas. These sectors are less sensitive to economic cycles and often outperform when other sectors decline.
A safe mix of stock market strategy for the last quarter of 2021
Considering many of the major indexes are still at their peak, it is my belief that there is still room for growth in the stock market. This may be short-term outlook of the stock market, but the long term trend is still bullish. As stated above, a good and personal mix of Nasdaq 100, growth and dividend stocks are a safe bet for the last quarter of 2021. Not all stocks may be benefiting from the rise but it’s good to have defensive stocks from dividend paying stocks as a buffer for volatility. It is also a very smart idea to throw in some blue chip companies from the S&P 500 and Dow Jones Industrial if your investment goal is to preserve some of your capital for next year.
Something to keep an eye on in the last quarter of 2021
Perhaps the most aniticipated news from now till the end of the year is whether there will be a significant raise on the long-interest rates. This will not only affect the stock market in the last quarter but would possibly snowball to the next year.
Also there is likelihood that many investors will take profit and sell the winners before the end of the year, this same investors will also be on the look for the best buy next year. Another strategy is to sell the low-performing stocks, and buy the solid performers from different sectors.
Stock investors should continue to invest and at the same time refine their strategy in response to the dynamics in the market. To succeed in the stock market is to constantly and consistently be invested. The mix that is presented here are just suggestions and not to be taken as advice. An investor must also think long term and expect there will be down time in the market but if he or she stays consistent and has a strategy in place then he or she may not only weather the last quarter of 2021 but also the months and years to come.
Thanks for reading.