Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial Briefs

More Articles  Printer Friendly Version

 

Keep Your Eyes On The Bad Economic News

5081 3

Big declines in the stock market are associated with recessions, and stocks often bottom months before recession-end.

No one knows exactly how long the downturn in the economy will last or precisely how much the economy will shrink – or even if it will shrink. However, one thing we do know is that recessions come and recessions go. And, when they go, the stock market has always headed higher.

5081 5

The stock market, as measured by the Standard & Poor’s index, usually bottomed well in advance of the end of the 10 recessions that occurred in the past 54 years, also known as the modern era of American financial history.

It is counterintuitive: When the economic news is worst, the stock market is very likely bottoming. When the news is worst, the stock market has very likely started a new bull run. It’s a fake-out. It’s why no one can reliably predict the market: You have to reenter the market when the news is terrible.

The stock market’s pattern of bottoming a few months before a recovery should be kept in mind this week, in case inflation worsened last month, which will be known when the Consumer Price Index for October is released at 8:30 a.m. ET, Thursday, November 10.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


Index
Developing Portfolio Return Expectations
Why Investors Like Our Financial Commentary
What To Do Now To Build Wealth
The New Rules On Retirement Affect Americans Of Any Age And Income
Sweeping New Law Changes Retirement Planning In 2023
You Can’t Trust The Phone Number On The Back Of Your Credit Card Anymore
American Exceptionalism Is A Legitimate Financial Philosophy
Investor Note: Post Pandemic Inflation Crisis Highlights U.S. Exceptionalism
Federal Reserve Likely To Dial Back Rate Hikes But They’re Far From Over
Test Your Personal Financial Knowledge In 30 Seconds
The Inspirational Story Of Hetty Green, The Warren Buffett Of The Early 1900s
Let’s Talk About Stock Market Volatility
Bracing For Recession Amid A Bear Market
The Inflation Imperative Makes A Recession Likely, But It’s A Sign Of Progress
When Will Post-Covid Financial Pain Stop?

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2023 Advisor Products Inc. All Rights Reserved.
© 2023 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV