To My Readers,
Why do markets react poorly to good economic news?
This past September, the US added 336,000 jobs to an already strong labor market, which surprised investors and caused markets to edge lower. This also caused an increase in volatility around the markets.
But why is it that good economic news equals volatility and down markets?
Markets prefer low inflation environments because that means low and stable interest rates. Good economic news, like a strong labor market, can stoke fears about an already overheated economy getting hotter. The market fear is that the Federal Reserve will see these strong numbers and choose to raise interest rates again, to combat inflation. The result of this is a quick sell-off and a lot more volatility.
I want to remind everyone that short-term market movements/reactions are not the final word for long-term market performance. Economic and market conditions change frequently, but that doesn’t mean your overall investment strategy should change.
Stay the course and keep putting your money to work. If you have any questions about your investment strategy, please do not hesitate to reach out.
Thank you,
Sid Misra, CFP® Beacon Financial Group
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Can I Afford This House?
There is a big difference between making the payments and actually being able to afford something. The purchase of a home is a huge life step that needs to be looked at closely.
If you, or someone you know, needs help with figuring out how much house you can afford, please reach out to me to schedule a time to speak. I am happy to sit down and run the numbers with you.
Figure This Out Before You NEED To
Life insurance is a scam
Until you lose your spouse who helped earn income for the family.
Disability insurance is a waste
Until someone who was making money can no longer work to earn their income.
Estate planning isn’t needed
Until you have a family member pass away with no planning done, which causes you to spend a lot of time and money getting it all sorted out. All while grieving.
Financial planners are too expensive
Until you make a mistake or mistakes that cost you a lot of money and time
Figuring all of this out when you NEED to is certainly an option. But, I personally feel like it’s not the best option.
If you have questions about any of the above and want to be proactive instead of reactive, please reach out for a free consultation.
The Time Will Pass Whether You Do It, or Not
The opinions voiced in this material are for general information only and are not intended to provide specific financial advice or tax 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.
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