Today’s market activity is off to a very negative start. A lot of issues are causing the selloff.
Rising interest rates generally precipitate a move from equities to fixed income. Traders take some profits, invest in the fixed income sectors, and wait until they are ready to buy back into the stock market.
The state of the economy and the prospects for inflation and corporate earnings also conspire to affect market activity. Currently, the market does not trust the government to get inflation under control. Although prices and sales are rising, the cost of goods and labor are rising faster. Add to that the scarcity of labor caused by COVID and you are going to get negative activity in the markets.
Lastly, the threat of a war in Europe is a major issue. The tensions caused by the mere threat of war are weighing heavily on any positive/bullish attitudes. Actual war will be a social, economic, and political disaster for most of the world.
Confidence is slipping. We have been in this position before…2008 and 2009 and with the Pandemic in 2020.
You have not actually lost anything until you decide to sell. In the long run, I believe the world will recover, and the markets will recover, and we will get back to “normal”.
Patience is the best course of action for the present.
Please reach out to us at any time. Our focus is on you and your financial future.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.