Makeup & Robinhood (HOOD)

Estee Lauder (EL), a cosmetics company, fell -16% on news of layoffs and falling sales. While layoffs could indicate weakening demand for a product or service, they can be critical to a company’s long-term survival and growth, and can even lead to higher stock prices over the long-term as investors look favorably on a leaner, more efficient business. For example, in the recent past many large tech companies like Meta (META) and Google (GOOG) have seen their stock prices increase after announcing layoffs.

Following pushback from the CFTC, Robinhood (HOOD) backtracked on offering betting contracts for the Super Bowl. It’s important for investors to recognize the difference between gambling (like betting on the Super Bowl) and investing (diversifying, owning quality holdings, and being patient).

Overall markets stayed mostly flat on Tuesday. Regardless of the headlines, investors who take a long-term approach tend to do better. By focusing on investing over full market cycles, staying diversified, owning high-quality holdings, and remaining patient, investors can give themselves the best chance of success.

The opinions expressed herein reflect the opinions of Linden Thomas Advisory Services, LLC (LTAS), and are subject to change without notice. Past performance is no guarantee for future results. The securities referenced in the article are not a solicitation or recommendation to buy, sell or hold securities. Upon request, free of charge, LTAS can provide a list of all portfolio holdings held in its portfolio for the past year.”