The salient point here is that many people have become complacent with their investments because the market has roared up for over 13 years. Admittedly, I did not hold them for the long-term and sold too early but that is a story for another day. That was my mental bottom and I made some purchases that day. I still remember March 9th 2009 when the intraday trading on the Dow reached 6,500. The past 13 years with the stock market has been a pretty glorious ride upwards. Try to be safe and thoughtful with your investments, taxes and estate planning decisions. If you’re good on cashflow for your daily needs, not much changed for you today. Understand your lifestyle and how much it costs, try to understand how much income you’ll need for retirement and match this income needed to the income you’ll have from your retirement resources.ħ0’s and beyond - protect the downside, you might not be buying new stocks like you once were but income is key. Maxing out 401ks and additions into IRAs. Seek to save the max in retirement vehicles. This market downturn is an opportunity for you, your time horizon is still long for retirement.ĥ0’s & 60’s - it’s real, there is light emerging at the end of the tunnel with retirement. Your time horizon is long, particularly for those twenty-somethings planning for retirement.ģ0’s & 40’s - you’re more established, you’re not a newbie with being an adult, seek to minimize debt and bolster up 401k contributions to the maximum. If you’re in your 20’s, keep your head down, work hard, minimize debt and invest into your 401k and investment account as the market falls. If you’re analyzing your personal financial situation with all of this news, it’s important to filter this market environment to your life-stage. Where are you in your financial life-stage? The numbers matter most relative to expectations, when we are surprised, we are upset. These reports are on the economic calendar this week and they carry expectations of how bad things are, if a report is worse than expected the markets will be upset. Finally on Friday, we’ll see the Consumer Sentiment Index reported. We will see the Producer Price Index released on Wednesday, the Empire State Manufacturing Survey on Thursday along with Retail Sales data by the Census Bureau. But that's what financial markets are pricing against, and if the economic outlook isn't quite so bleak, that could bode well for earnings and therefore equities more broadly.There are going to be more reports on the economic calendar this week. Maybe the bar of expectations has been set too low. Emerging market indexes are the only ones still lagging.
and G10 economic surprises indexes are the highest since May, and the global surprises index on Friday crept up to its highest since June. In any case, the economic data is actually not as bad as feared.
Similarly, can the market's Fed view get any more hawkish than a terminal rate of 5 per cent and 10-year yield of 4 per cent? Possibly, but that may require a catalyst not baked into current forecasts - and recession next year is pretty much the consensus view. Bank of America's 'Bull & Bear' has been at "max bearish" for an unprecedented four weeks in a row and, according to the bank's strategists, investors with traditional "60/40" portfolios are facing the worst returns this year for a century. Monday's powerful surge on Wall Street - the second in three sessions, again without an obvious catalyst - is yet another classic bear-market rally, or a sign investors may be in the process of carving out a market bottom.įor a start, it would be difficult for investors to get any more bearish. While most financial assets can fall to zero, there usually comes a point where so much bearishness is factored into the price that there's limited scope for further losses, and the alarm bells turn to screaming 'buy' signals for investors.Ĭould we be at that point for major stocks and bonds markets? Could the permagloom of 2022 be about to lift? (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever
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