Roller Coaster Stock Market
Good morning friends!
I have spoken with some of you, and I will be contacting as many of the rest of you as possible this week.
Wow! What a roller coaster this year has been in the stock market. We have had two, 10% corrections this year. This after an extended period of low volatility. We will not complain about low volatility again!
It has been a challenging year for us, and I know for you as well. The emotions come: fear, anxiety, disappointment. Feelings can sometimes point me to some reality I must accept, and on some occasions they are deceptive. Let’s examine the current situation.
The economy? Stable growth. Low inflation. Low unemployment. All good? It is not ideal. The trade wars, slowing growth numbers, still on balance good. There are times when the economy, and the markets disconnect with what is happening in the economy. That means, one is going a direction, the other is going the opposite direction. The current environment feels like one of those times.
One of my long used indicators is flashing a buy signal. I have used this indicator for more than 30 years. At Vista Investment Partners, our indicators are not numerous. The ones we use are battle tested. We prefer fewer indicators, with a history of dependability. It may be different this time, though I don’t think so. If you would like to discuss this indicator, please contact us.
The emotions are important. We need to observe how we respond to them. It may be telling us that we do not tolerate risk as well as we did in the past. It may be time to revisit our asset allocation. Are we allocated properly? Again, feelings are important, though they do not have to control us.
The winter solstice is just around the corner. Is there any doubt that spring will come again. The sun will shine on the stock market as well.
Enjoy the day…r2