There is plenty to worry about these days.
Top of mind is the escalating tensions between Russia and Ukraine. Closer to home, high inflation persists, and the Fed is preparing to tighten monetary policy.
And while Covid is moving away from the front page, the markets have a lingering worry that another variant could emerge. Before long, the midterm elections will begin making headlines as well, as candidates take positions.
Add it all up, and you see the S&P 500 teetering on correction territory as some investors ponder the best way to ride out the next few months.
- The first is “pullback,” the mildest form of a drop in the markets. You might hear a market commentator refer to a dip of 5% to 10% after a peak as a pullback.
- The next term is “correction,” which is used when markets drop 10% to 20% after a peak. Then there is a “bear market,” where the drop is 20% or more since the last peak.
We’ve aligned your investment strategy with your goals, time horizon, and risk tolerance. We built your portfolio anticipating that there will be good times and bad.
If you’re worried about the financial markets, please reach out. I understand that current events can be a bit overwhelming, and you may feel the need to be proactive. But remember, we created your financial strategy based on your goals, time horizon, and risk tolerance, and we anticipated there would be unsettling events along the way.