ROUGH SEAS
5 Immediate Actions to Create a Smoother Ride
I grew up on the shores of Lake Erie. From a very early age my parents enjoyed boating. Their passion grew from a small (24’ wood boat) to larger, pleasure boats (41’) as I got older. Nothing made my late father any happier than being out on the water in his boat.
I have such fond memories of being on the boat on nice summer days cruising on the lake with endless sunshine and the wind in my hair. We would go to one of the many islands, Canada, or another fun destination.
However, sometimes the lake was rough, and then it wasn’t much fun. I remember getting sick from being tossed around from the rough seas, because…
Lake Erie is the shallowest of the Great Lakes.
As a result, it can get rough extremely quickly when the wind picks up.
I was on some very harrowing trips when the lake whipped up quickly and the lake grew ferocious by the minute. I recall transitions from calm summer fun to the tumultuous chaos of 6-to-10-foot waves taking only minutes.
These transitions resembled the 2022 stock and bond markets, especially when unfavorable news comes out.
This past week started off with a positive Monday. Then Tuesday’s August CPI (Consumer Price Index) date was released. Instead of the expected pullback in the monthly inflation numbers, the readings were slightly hotter. And the year-over-year inflation numbers stayed elevated at 8.3%.
The expectation was that the decline in energy prices (gasoline) would offset other inflationary prices. Energy has declined but food and rents continued to climb.
The stock market went on a severe nosedive (worst since June 2020) and interest rates headed towards new highs (the 2 and 5-year US Treasuries hit new highs, the 10-year did not)
The lingering inflation picture is captured below.
Then on Wednesday, the PPI (Producer Price Index), which is the Fed’s more closely watched index, came out and backed up the higher inflation story from the previous day.
It was a rough week in the stock and bond markets. The S&P 500 ended down 5.2% from last Friday, the NASDAQ 100 was down 5.8% and the Small Cap (Russell 2000) held up a bit better but still down -4.5%.
Click here to continue reading about the following…
Recession Ahead?
Corporate Earnings Estimates and Calculator of the Market’s Value
Line in the Sand (3900 trend line broken)
Home Buying Has Come to a Screeching Halt
September-The Eye of the Storm
5 Actions You Can Take for a Smoother Investment Ride (NOW)!
We want to make it easier for you to create your own Smoother Investment Ride. Utilizing an optimized blend of our dynamic quant-based investment strategies, we can show you how. If you would like more information on utilizing a “bundled approach” please contact Rob Quinn, our product specialist to discuss several discounted bundles that we are offering under this Smooth Sailing opportunity. He can be reached at (407) 770-7637, or you can schedule a call here:
