Why Investors Should be Optimistic and Stay Committed to the Plan

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Taylor Financial Group

There’s no denying that we’ve had our fair share of volatility lately.  In fact, the last time we saw this much volatility was during the financial crisis.  But we expected some volatility for 2018, especially since 2017 proved to be one of the least volatile markets since the mid-60s.  It was bound to happen after 110 months of a bull market.  That inevitability, combined with all the political drama so far this year, has created a little more volatility than predicted.  The good news is that we anticipate a strong earnings season and, therefore, despite all the drama, investors have reason to be optimistic.

Strong Earnings Season

Earnings season kicked off last week and, given the consistent growth in the S&P 500 Index, most economists expect another strong quarter.  There are several reasons why folks are expecting a boost this quarter, including the robust U.S. manufacturing activity, strong global economic growth, and the new tax law.  In fact, LPL Research expects that companies will begin to announce their plans regarding how they will use their tax law proceeds.  Investors will likely begin to focus their attention on strong company fundamentals and corporate profits over trade headlines, which should also help stabilize stocks.  Ultimately, we should all expect some more volatility, since the forecast is of earnings growth of 15% year over year.

Stay Committed to Your Plan

We know volatility can be intimidating.  It could cause you to question whether you should switch up your investment strategy or revise your portfolio.  And, don’t get me wrong, sometimes volatility can present some opportunities for investors.  But one of the most effective ways to deal with volatility is to stay the course.  Don’t let yourself become anxious.  Moving money around out of fear or chasing stocks for better performance could ultimately take you off track and hinder you from pursuing your long-term goals.

If you’re feeling anxious about the markets or have questions about your portfolio, give us a call.  We are happy to answer your questions and help ease your fears.

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

5 Things To Know Now That The Bear Is Here

Dear Friends, It finally happened. On Monday, June 13th, the S&P 500 Index moved into a bear market, finally closing 20% beneath the January 3 high. And then last week, the S&P 500 Index rebounded 6.46%, to bring the year-to-date return to -17.3%.   Here are 5 things to know ab …

Will There Be A June Swoon? Maybe, But Maybe Not

Dear Friends, After a late-month rally, we can say goodbye to the month of May, which now opens the door to June. Here’s the bad news, June is historically a weak month and it is actually the worst month of the year during a midterm year, down 1.8% on average. The good news though is …

Tips to Help You Stay Strong During Market Volatility

It’s almost impossible not to feel anxious at the dips and dives the stock market has been taking recently, compounded by relentless inflation-focused headlines. That’s why you might be surprised to learn there’s a lot of positive news to be had, despite the market uncertainty. 
1 2 3 210 211 212

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation