Roger Scott is the head trader at WealthPress and has spent his life perfecting the art of stock trading. Roger Scott and WealthPress are dedicated to increasing the financial literacy of average Joes across the world, which is why I asked for an interview.
Roger Scott agreed to take a short break from his work at WealthPress to answer my questions, so I have an incredible interview full of information for new and veteran investors. Let’s take a look at Roger Scott’s advice.
The market has been showing nothing but red lately. Does that mean investors should wait to invest their money?
Not necessarily. Timing the market isn’t easy. It’s quite literally a full-time job. This is why most people are much better off consulting with trading professionals or just investing in safe ETFs and long-term stocks.
So, just because the market is red doesn’t mean you shouldn’t invest, but you can’t expect to time the bottom. It’s up to the individual if they’d rather keep cash or invest their money.
Do you expect a market rebound anytime soon?
I’m not psychic, so I can’t say how soon the market will rebound. What I do believe, however, is that it will rebound eventually. The market has always went up over time, so if you have time, then you have a lot less to fear as long as you’re making smart investments. So I can’t say whether the market will rebound tomorrow, next month, or 2 years from now. But I believe it will rebound.
What smart investments can people make while the market is so uncertain?
Investment fundamentals are more important than ever. The best thing investors can do is invest in proven companies with a good track record and strong foundations.
These companies are going to be around for the next 30 years, and you’re practically guaranteed to get your money back if you invest in them. Full market coverage is also rather full-proof and ETFs that cover the entire market is the safest option, as usual.
So should investors throw their whole portfolio in one of those “strong fundamental” companies?
Absolutely not. We’ve all heard the phrase don’t put all your eggs in one basket. Things happen, as recent years have shown, and you can not predict the future. If you could, you wouldn’t need my advice.
I think it’s a good idea to invest your money across multiple strong companies, across multiple industries, and even throw some in the ETFs like I mentioned before.
How important do you think cash is? Is inflation making cash a bad option?
That’s hard to answer. Inflation is going to continue to rise, which makes holding cash a real pain. However, so many people absolutely need cash right now. After all, you can’t buy bread with cash. Even with inflation, cash is still beating most of the market, so it’s a hard call to make.
Like I said before, don’t put all your eggs in one basket. I don’t think investing is a bad idea. I don’t think holding cash is a bad idea.