08/07/2024
So...you're experiencing some market volatility for the first time in a while. Let's talk about why you should or shouldn't be too concerned about it..
1. In general, the markets have had a good year and were overdue for some type of correction, especially in tech.
2. An August-September correction is consistent with seasonal tendencies, especially during election years.
3. The blame for the sell-off is a “growth scare“ as unemployment ticked up and fears of a recession along with geopolitical tensions have risen.
4. There is concern that the Fed is behind the curve in cutting rates, but inflation is coming down and they are likely to cut rates before year end, ultimately loosening financial conditions which is supportive of asset prices.
5. I think that the seasonal weakness will fade, corporate profits will remain resilient, and with the support of likely rate cuts the market’s uptrend will re-assert itself in Q4
Basically, don't let the clickbait articles scare you. Just keep dollar cost averaging into the market as always :)