June Special Edition Navigator
By Allen Davis
I’ve been hearing from folks that what is going on in the economy and in the market (two separate things) “feels different this time” – it's not the same old market correction event that happens regularly. The truth is, that every time this happens, it feels like “this time” it’s different – (for example, the Covid market meltdown – “this is a game-changer” was commonly expressed). This time, we hear alarming predictions that assets are being repriced in such a way that will permanently impact all our saving and planning, etc.
This is what I say to all this – it’s time to hear from Daken Vanderburg! In times like this, perspective and history are the best antidotes to fear and trembling, and Daken has done it again. I hope you enjoy his analysis, and by the way, it contains a really concise description of the role of the Fed, which is commonly spoken of but very often only vaguely understood. This is a great read and should help you sleep a little better. As Daken says, we’re not asleep (during the day) and are watching things carefully.
It’s a good time to think about your long-term plan, and your asset allocation and cash flow. We’ll be setting up semi-annual review meetings soon, and meanwhile, we’re here and are happy to talk with you at any time for any reason – stay well, and stay in touch!
Markets have been troubled. Open any brokerage or 401(K) statement and you are likely to see a page of red. It seems that nearly everything has gone precisely the wrong way: bonds are down, stocks are down, and gas prices (along with the price of nearly everything else we purchase) are up.
Fear and uncertainty abound, and the headlines foreshadowing the end of the world are not helping.
And yet…perspective matters.