The value of profits in volatile markets

AS with many others in my generation, I prefer trading on the US market because of the greater liquidity and breadth of companies available for trading.

So when the S&P 500 index fell by 5.3 per cent in January, I decided that it could be time to look out for cheap stocks again by spotting stocks that had shown a significant drop in price.

As I'd been following stocks in the tech sector for some time, my attention was immediately drawn to Netflix, which was the second worst performing S&P 500 counter in January. Its share price fell by some 42.8 per cent from Dec 31 to Jan 24, before easing to close down 29.1 per cent for the month.