What Growth Scare?

This is a funny time of year. Depending on where you live, children are either already back in school or getting ready to head back. The summer calm has turned frenetic. Now you’re probably racing to get ready for the return of routine.

You’ve got a list of items you need to get done. Backpack, glue sticks, scissors and crayons. You’re freaking out because all the crayons are sold out. At all five stores you’ve visited! Yes, finding crayons can be stressful. But, then you do, the kids are off on their first day and you breathe a sigh of relief. You had a moment of turmoil, but calm has returned.

You may experience a similar adjustment even if you don’t have school-aged children. A businessperson may be gearing up to reengage potential customers who were checked out over the summer.

You may experience a similar adjustment even if you don’t have school-aged children.

That move from chaos to calm is also how the last two weeks in the markets have felt. A fortnight ago, the market got scared growth was collapsing. The unemployment rate spiked up to 4.3% and the freak out began. Some on Wall Street were eying a recession and calling for the Fed to cut rates immediately—and in a big way.

But, as we searched for confirming data, instead, we received the opposite. Jobless claims have receded a bit. The consumer continues to spend . And, the soft landing seems to be back on track.

This is life in the markets. They’re forward looking so they can be whipped around based on how they feel the story will unfold. Recession today. Soft landing tomorrow. It could reverse yet again the second I publish this.

They’re forward looking so they can be whipped around based on how they feel the story will unfold.

The main takeaway here is that the markets move like a jet ski. They zig. They zag. They can reverse course very quickly. It’s easy to get thrown off if you’re not balanced. The economy moves like a big cargo ship that generally makes more subtle shifts in direction.

This is why it’s important to maintain good balance with your investments. If you’re positioned for your long-term goals, it’s harder to get thrown off the boat as it zigs or zags.

The last two weeks are a great example why developing good investment discipline is one of the best ways to successfully invest long-term.

The last two weeks are a great example why developing good investment discipline is one of the best ways to successfully invest long-term.

This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.

All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.