If you’re going through hell, keep going.
Did last week make you nervous?
Market losses were significant as volatility spiked. The broad-based decline had many thinking that there may be trouble ahead. And indeed, there may be, but I don’t think so.
The equity markets are supposedly forward looking, but last week’s activity/losses told us little about a change in the direction of the economy. Very little. Much of the current data is saying a slow-down is not on the horizon. The US economy is strong. Employment is good, inflation expectations remain within manageable ranges and the FED is behaving in a measured manner.
This doesn’t mean that there aren’t some concerns. Tariffs will hurt GDP, and housing is soft. Oil has traded above $70 a barrel and will act as a tax if it stays elevated.
So, what was last week all about?
Probably nothing more than a technical correction or as some have opined, late day selling by some fund managers to keep their funds from deviating from their benchmark.
Does next week have me a little anxious? Yes.
Was last week’s action any more than a normal correction? No, yet circumstances can change.
But, with the exception of our problems with China, any imbalances that occur should be easily managed.
Stay the course. Trust the data.
SCI HIGHLIGHTS
NOVEMBER 1st
SCI QUARTERLY RE-BALANCE
It’s that time again…
Please consider risk profiles and model mapping along with any cash management needs for your SCI clients as we move toward the SCI Quarterly re-balance.
SCI Monthly Webinar
OUR NEXT SESSION:
TUESDAY, NOVEMBER 13th
@ 12:00 PM CDT
In our next session Jim Baldwin and Bob Dunne will discuss and analyze the upcoming SCI Quarterly re-balance.
Click here to join the SCI Monthly Webinar
Join from PC, Mac, Linux, iOS or Android:
Meeting ID: 325 159 0655
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