I mentioned in a recent LinkedIn tidbit as well as an email to expect stock market volatility to pick up. Well, now that the heartburn is setting in for some, here’s my brief take.
What’s happening right now is more about profit taking and less about what the media (and pundits) are talking about. For sure, inflation, supply chain bottlenecks and the latest variant of the virus continue to be a drag on the recovery and are concerning. I’m not ignoring them. But I would point out that on any given day, these issues can be a catalyst that either increase selling activity or be the stimulus for buying activity on any given day.
As of the date and time of this writing, the Dow is off roughly 3% from its all-time high, the broader S&P and Nasdaq indexes are off roughly 3% and 8% respectively. For context, the Nasdaq, commonly referred to as the tech heavy index, is more sensitive to interest rate changes. Even though rates have not yet been increased, the mere talk of rising interest rates (by the way they need to go up. More on that another time) has led to broader selling thus more downside on the Nasdaq.
If you have a personal concern, beyond volatility, that you want to discuss or you feel it’s time to reevaluate your tolerance for risk, please email or better yet, pick up the phone and call me. You don’t have to schedule an appointment if you don’t feel a meeting is necessary. But if you’ve got something on your mind, you owe it to yourself to reach out and discuss it. Briefs like this are intended to be general in nature. It’s my way of reassuring you that I’m paying attention to market trends.
‘til next time….. ”Stay Nimble, Be Tactical and Know What You Own”