Worried about the Market? Here’s What You Need to Know
When markets drop, it can be easy to panic.
But history shows that staying invested through downturns can often be the smartest move.
In this special market update, we break down what’s happening right now – and why sometimes doing nothing may be the best strategy.
What’s Going on in the Market
We’re seeing corrective activity in the market right now.
Whenever the market goes down, it can be easy to get anxious – and sometimes we begin to think with our hearts instead of our heads.
So we encourage you to understand that historically markets do not go straight up.
We believe we will recover from this just as we have the other 64 times since World War II.
The very fact that the market came off new highs recently shows that we have recovered from every market drawdown 100% of the time.
We feel the key is to try to think 5 – 6 months down the road – a year down the road – and expect that we will recover.
In our opinion, the American economy is in good shape. Corporate earnings are good. Corporate margins are good. The consumer is still in good shape.
And interest rates are expected to come down.
The most recent Fed survey indicated that they now think the Federal Reserve will cut interest rates 3 times starting in June – probably June, September, and December.
What we have going right now is commonly referred to as profit taking.
Think of it this way: Sometimes we have to come down and set a better foundation so we’re able to sustain the next move up.
Right now, it appears that we are at a period of short-term uncertainty, but long-term fundamentals remain strong.
And history tells us that investors who stay patient and avoid panic selling are typically rewarded when the market turns.
Check out the video as Mark Sorensen, our Chief Investment Officer, explains more on why markets are reacting the way they are, whether or not we’re in another tech bubble, and what to expect next.
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