Listen and subscribe to Stocks In Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcast. Risk is all around us. Whether it’s the real world or the investment world, we can’t escape it forever. In this episode of Stocks In Translation, Yahoo Finance Markets and Data Editor Jared Blikre and Producer Sydnee Fried welcome back a friend of the show, Steve Sosnick, chief strategist at Interactive Brokers.
This episode’s word of the day is risk: the chance that an investment’s actual return will differ from the expected return, potentially resulting in financial loss. While it’s true that the market generally goes up and to the right over time, Sosnick believes that people often “get very focused on reward” without fully understanding the associated risks. “I think when you get into an environment where things are a little frothy, people lose sight of that,” Sosnick said. “Risk is always out there. And risk has a nasty way of biting you at exactly the wrong times.”
Blikre and the team also discuss seasonality, a recurring theme in September and October. When asked about his investment strategy around it, Sosnick responded, “I take into account seasonality, but I don’t trade off.” He argued that although seasonality is part of investor psychology, it’s too inconsistent to be a reliable trading strategy. “On a month-over-month basis, it’s a little too random to, I think, make too many heavy-duty decisions,” Sosnick said. Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers, and hyperbole to give you the information you need to make the right trade for your portfolio.
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