The Market Seems Poised to Begin a Recovery

The stock market seems poised to begin a recovery. Housing prices have peaked, fuel prices are off their highs, the supply chain seems to be working out its kinks, rents are slowly retreating and food prices are still high but sale prices can be found indicating lower food prices are on the way.

There are two questions to ask, What drives the market short term? And what drives the market up in the long term?

The answer to what drives the market short term is: fear, greed, gambling and speculation.

We know fear, gambling and speculative investing can destroy significant wealth.

The answer to, What drives the market up in the long term is, Corporate profits.

Today, Corporate profits are at record highs.

Corporate profits are high and stock prices are low. Now is the time to buy.

Even when a good company’s earnings are down, it is still a good company and you should buy at the lower prices for the eventual long term gains. A tool we use for this is re-balancing.

Today as the market settles out. Meaning the market is up one day and down the next. The market is trying to tell us, do not panic… The Fed is doing what it is supposed to do. And as always, some will agree or disagree wanting the Fed to do more or do less. That’s okay.

The Fed will continue to do what it thinks best. Making adjustments as economic news and circumstances evolve.

The consumers pain today is real. Unfortunately, It is part of the inevitable economic cycle. As with all cycles, this too will pass. Hold on, the upward trend is in sight, invest more at these prices. We won’t be here much longer. We are re-balancing your portfolios to help you be positioned perfectly for the next upward swing.