I hope you’ve had a great week in spite of the chaos surrounding us. Between the market’s tumult and multiple tragic shootings, I can honestly say that I’ve had a very introspective week. I’m guessing you have too. Times like this make me question how valuable it really is to be exposed to international news all day, every day. Ultimately, it just makes our hearts hurt when we consider the challenges faced by so many people around the world, struggling with unthinkable tragedy. It would be nice to simply turn it off, but we all know that doesn’t make the hurt go away.
While I can’t change the world myself, I can do my small part to help you navigate the financial morass, allowing you to care for your needs and those of the people closest to you. It’s in this spirit that I offer a quick synopsis of what the markets did this week and what you may consider going forward.
As of Thursday’s close, the market found it’s way back to beginning-of-the-week levels. We’re still a far cry from where the market once was, but it’s a meaningful move forward nonetheless. While I’m not suggesting the coast is completely clear, there are technical indicators that show the market’s lows were tested and fought back, likely avoiding what’s called a ‘primary bear market trend.’ Instead, the drop of the past two weeks or so officially put the market into a ‘bear market drop,’ but that’s not the same as a long-term bear market trend. Got that? Sorry about the jargon.
This means we don’t have ample evidence to suggest the market will continue its decline. This is welcome relief from the indications earlier in the week. This causes us to ask ourselves: What next?
My advice: if you’re planning to invest for the long-term, in a manner that is consistent with your risk-tolerance, it may be prudent to remain fully invested (or it may be time to reenter the market, if you exited to avoid the chaos). Yes, there will be continued volatility (ups-and-downs). As always, there are no guarantees offered by Wall Street. We look to banks and insurance companies for guarantees against losses.
If you’re feeling anxious about the market, you may be invested incorrectly or may need a bit of context in order to feel more comfortable with your strategy. Either way, it’s okay to feel that way, let’s just get you fixed up so you feel better after being stress-tested. Set it and forget it sounds good as a pithy quote, but it may not be the best course of action for you to take. Instead, let’s re-set it so you don’t regret it, shall we?
I’m happy to schedule a phone call or face-to-face with you to discuss any and all of this. China’s erratic moves have certainly done damage, but China is appearing to take measures to restore some sanity.
Please let us know how we can help. I look forward to hearing from you soon.
All the best,
Adam Cufr, RICP®
