Keep Your Wits About You
This coming August will mark a year since the broad equity market in the U.S. experienced an 11% decline in the span of five trading days. Predictably, the cable and online news outlets had a field day, calling it a potential economic crisis in the making, especially with its apparent connection to China's slippery and slowing economy. The prognosticators urged investors to prepare for the worst, which never happened. A slight correction in the market (that had been growing steadily), should not have signaled panic.
Nor should we have rang alarm bells during the early part of this year, when once again the market slowed and more panic ensued with talk of China, the declining oil market, and a possible looming earnings recession.
Feeling like wiser, more educated versions of ourselves as consumers of the relentless media coverage, we can now look back on these past nine months with grace and optimism. The market has indeed bounced back, employment is on the rise, and we're now within 2% of an all-time high reached in May of 2015. Let this be another reminder to think long-term, take the economic reporting in stride, and get out an enjoy the sunshine instead of laboring over this "news" that never really was in the first place.
For more on this topic, click here to request a copy of market expert and firm favorite Nick Murray's May Client's Corner.