What a wild ride these last couple of weeks have been in this crazy market! To say the markets are getting slammed is putting it lightly. Many of you have expressed gratitude to us for focusing on non-stock income generation, thus allowing you not to lose any sleep over the recent stunning volatility in the markets. Due to our focus on asset protection and income generation it has allowed us to to stay calm and as an extension you our clients are calm. We’ve been touting the increased volatility and the possibility of these market conditions since the middle of last year and certainly since the beginning of 2016. Here are some factors to keep in mind as we travel through these uncertain financial times.
– The market has been down some 1200 points since the beginning of the year. As of 1:15 pm today the Dow sits at 15929 & the S&P at 1870. This is why the pundits are saying we are in correction territory, with all the technicals pointing to a sell off.
– A number to watch is 1867 on the S&P; if we break through that number it could be quite conceivable we are heading into ‘Bear” territory.
– To go from correction to bear, the S&P would have to officially be 1635.15. Again,not too far of a stretch if this volatility keeps up.
I urge all of you to keep this in mind; two big contributing factors which drive the market are fear and greed. With oil prices, China’s economy, European economies in trouble, and our own financial instability, fear begins to set in. Whether rational or not it plays a big factor in which direction the market heads.
I hope all of you will share this information with people you know and care about. Share your story, let them know all this volatility is not affecting you. Let’s all make an effort to get the word out. Introduce your friends and families to us so they too can gain the knowledge you have and share in the peace of mind you are experiencing.
As always if you have any comments or concerns please let us know. Together we will navigate through these tough financial times and keep working towards the goal of maintaining lifestyle and enjoying your retirement years.