What’s Causing the Market Volatility?
The current environment is volatile, and I’m sure has raised some concerns. Market volatility like this happens from time to time and we are prepared to weather the storm as the market digests new information. As always, we are focused on your long-term financial goals while actively monitoring these types of events.
Global developments such as the war in Ukraine and lockdowns in China, have increased strain on energy and the global supply chain, which puts upward pressure on consumer prices. The Fed has begun to be more aggressive raising rates to get it under control, but it may take time as they won’t raise more than .50% at a time. There are sectors represented in your well-rounded portfolio (Financials, Industrials, Materials, and Consumer Discretionary) that should benefit from rising rates. Also, the recent sell-off is also a great buying opportunity in other areas of the market if you have excess cash available.
My crystal ball won’t tell me where the bottom is, but I do know a year from now we will be happy with where we stand in the markets.
Investment Advisory services offered through Moonstone Asset Management, Inc. a registered investment adviser
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.