Investors: "You Don't Have to Be a Perfectionist in This Environment."

Investors: “You Don’t Have to Be a Perfectionist in This Environment.”

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On this podcast, Motley Fool senior analyst Asit Sharma discusses: Stocks, across the board, falling in response to the Consumer Price Index data for August.

Fed Chairman Jay Powell and the increasing likelihood of a third consecutive rate hike of 0.75 percentage points.

The importance of having a watch list of stocks.

Buying great businesses at lower prices.

Motley Fool senior analyst Tim Beyers joins Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp to discuss what is a tech company.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video.

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Playback RateChapters Chapters Descriptions descriptions off, selected Captions captions settings, opens captions settings dialog captions off, selected Audio TrackFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Something big just happened When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*They just revealed what they believe are the ten best buys for investors right now… And while timing isn’t everything, the history of their stock picks shows that it pays to get in early on their best ideas. *Stock Advisor returns as of August 17, 2022 This video was recorded on Sept. 13, 2022. Chris Hill: If you’re a long-term investor, today was a good day to go shopping. Motley Fool Money starts now.I’m Chris Hill. Joining me today, Motley Fool Senior Analyst Asit Sharma. Thanks for being here. Asit Sharma: Chris, thanks as always for having me. Chris Hill: This is one of those days, isn’t it? This is one of those days with the market. Consumer price index rose 0.1 percent in August, month-over-month increase compared to July. That 0.1 percent increase, Asit, has sent stocks as a group straight down. As you and I are speaking, the Dow Jones Industrial Average is down nearly three percent, the S&P 500 is down three percent, and the Nasdaq is down just more than four percent. Where do you want to start? This is all because the Fed is meeting next week, September 20th and 21st, and the powers that be on Wall Street are expecting, not incorrectly, they’re expecting a third consecutive rate hike of 75 basis points. Asit Sharma: Yes. Chris, first of all, look, it’s the power of small fractions, as you note. If you look at the big picture, nothing much has changed since the hot reading of the summer, just a marginal sequential bump, really small. But this reminds me of an old Dire Straits lyrics from the song, “Espresso Love.” At the end of this song, the narrator is talking to, in those days, I knew what they called them, but this would be at barista today, and he’s asking about is espresso and he says, “Is this another one just like the other one?” Today, investors are waking up thinking, look, we all see this three-quarters of a basis point hike that’s in the cards for September, but we might be getting another one of a similar magnitude in October.Previous forecast, we’re saying we would have three quarters of a basis point raise and then maybe for the rest of the year, it will step down, maybe it’ll be like one percent total. This throws it off, and about this increase, what’s worrying investors is that when you pull apart two parts of the CPI, which are a little bit volatile, so that’s energy, of course, and food, the stuff underlying that looks hot. Rents are rising. The cost of medical care is rising. We saw that used car prices are finally starting […]

source Investors: “You Don’t Have to Be a Perfectionist in This Environment.”

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