From Nasdaq:

In Zacks Investment Ideas’ “2023 Rewind” series, humbling lessons from legendary investors are examined, as valuable takeaways extracted from 2023 can provide a foundation for successful investing long-term. Part two highlights the importance of extreme sentiment readings in marking turning points in the market. Using the CNN Fear & Greed Index, the article explains how investors can benefit from contrarian positions in the market. SPY encountered two significant corrections in 2023, but monitoring Fear & Greed extremes could have provided an edge, marking each bottom in the market.

Market valuations have been proven to be unreliable timing tools, as seen in the case of Nvidia (NVDA) during the market’s perception of overvaluation in 2023. Valuations expand and contract with bull and bear markets. Evidence shows that stock prices rise over time, making decisions based on future success informant to long-term investing. While inevitable, bear markets have not hindered market rises over time.

Zacks Investment Research offers top stock-picking strategies with no cost or obligation. Past performance is no guarantee of future results, and it is crucial to consider the inherent potential for loss in any investment.

As an added bonus, Zacks is now presenting early access to its top 10 stock picks for the entirety of 2024. The Zacks Top 10 Stocks are chosen by handpicking the best 10 tickers to buy and hold in 2024, set to be released on January 2. Early access to these choices is a chance investors should not disregard. For additional recommended stocks, readers can access the Zacks Investment Research’s “7 Best Stocks for the Next 30 Days” report.



Read more: Zacks Investment Ideas feature highlights: SPY and Nvidia