Everyone knows Michael Jordan... Jordan is one of the greatest athletes in history. He led the Chicago Bulls to six NBA titles during the 1990s. He won the league's Most Valuable Player award five times in 15 seasons.
An Investing Lesson From a Tough Game to Master
By Pete Carmasino, chief market strategist, Chaikin Analytics
Everyone knows Michael Jordan...
Jordan is one of the greatest athletes in history. He led the Chicago Bulls to six NBA titles during the 1990s. He won the league's Most Valuable Player award five times in 15 seasons.
In every season except one, Jordan made the NBA All-Star team. He finished first in scoring 10 times. And he earned a spot on the NBA All-Defensive First Team nine times.
If you want more proof of Jordan's sports-legend status, consider this tidbit...
The Miami Heat retired his No. 23 jersey in 2003. But he never even played for the team.
Heck, Jordan's stats would've likely been better if he didn't take a career detour...
After winning his third title in 1993, Jordan retired from the NBA. Then, the following spring, he decided to try baseball.
Jordan signed a minor league contract with the Chicago White Sox. He took part in spring training in Florida. And he joined the team's Double-A affiliate in Birmingham, Alabama.
But Jordan couldn't find much success with his new sport...
In 127 games for the Birmingham Barons, Jordan only batted .202. He struck out a team-leading 114 times and made 11 errors as the Barons finished last in their division.
The next spring, Jordan returned to basketball. He went on to win his final three NBA titles from 1996 to 1998.
Due to his struggles, you might think Jordan would consider baseball the toughest sport. But in a September 2021 interview, he called another one "the hardest game to play"...
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To Build Real Skills, You Have to Stay With the Game
Jordan was referring to golf.
As he explained to NBA player Steph Curry...
[In basketball,] I can always respond to an opponent – a defensive guy, offensive guy, whatever.
But in golf, it's like playing in a mirror. You're battling yourself consistently to try to get perfection – every swing, every putt.
When someone plays golf for the first time, they're likely in for a long day...
Their shots will veer into the trees, land in bunkers, or splash into nearby water hazards. They'll spend most of the time far away from the fairway.
Golf is a grind for beginners. As Jordan said, golfers face a constant battle with themselves. But like almost anything in life...
It gets easier over time.
As time rolls on, folks who stay with the game build real skills...
They master a clean chip to escape a bunker. They figure out how to punch a ball free from under a canopy of trees. Getting out of all kinds of jams on the course becomes easier.
Eventually, the hazards that once loomed large are just another part of the game.
The more times a golfer hits the course, the sharper they become. Every round is another chance to perfect their swing and focus.
That leads us to another valuable lesson from golf...
Knowing When to Take Risks Versus When to Play It Safe
The hardest shots don't always yield the biggest rewards.
You'll often hear golfers use the phrase "play smart." Taking too much risk on every hard shot isn't the way to play great golf.
Just imagine standing over a 200-yard approach shot with water guarding the pin. You can play it safe and "lay up" with a pitching wedge. Or you can swing hard for the flag.
The best golfers know when to take risks. And they know when to play it safe.
Folks, the first half of this year was hard. A lot of investors found themselves in the proverbial "bunker."
But investing, like golf, is a long game. Sometimes you need to slow down and play smart. But after a rough patch, don't forget to take advantage of the easy opportunities.
The market downturns are just another part of the investing "game."
As you know, the market is back to making new highs. So it's time for us to move on to the next "round"... and look forward to more upside in stocks ahead.
Good investing,
Pete Carmasino
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.36%
11
13
6
S&P 500
-0.05%
123
268
108
Nasdaq
+0.06%
31
54
16
Small Caps
+0.69%
656
915
306
Bonds
-0.13%
Energy
+2.69%
4
12
7
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+3.57%
Information Technology
+2.12%
Materials
+1.28%
Industrials
+0.57%
Consumer Discretionary
-0.27%
Real Estate
-0.67%
Consumer Staples
-0.77%
Financial
-0.85%
Communication
-0.91%
Utilities
-0.98%
Health Care
-1.27%
* * * *
Industry Focus
Pharmaceuticals Services
12
29
1
Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -8.78%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #7 of 21 subsectors and has moved up 1 slot over the past week.
Top Stocks
MRK
Merck & Co., Inc.
COLL
Collegium Pharmaceut
ARVN
Arvinas, Inc.
* * * *
Top Movers
Gainers
MRNA
+8.83%
INTC
+7.23%
ALB
+7.21%
DVN
+6.85%
HAL
+6.08%
Losers
FICO
-8.91%
FSLR
-6.54%
NRG
-4.68%
NEM
-4.24%
AES
-3.91%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
No earnings reporting today.
Earnings Surprises
No significant Earnings Surprises in the Russell 3000.
* * * *
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