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Random Gleanings: Good News / Bad News for Markets

Random Gleanings



There are some challenges facing markets presently.  In this "Good News/Bad News" episode of Random Gleanings, Jesse & Chris offer some context for what's cause for caution, and provide some positive perspectives on some items you certainly aren't hearing on the news.


Questions?  Thoughts?  Let us know at info@proplanwealth.com 


Positive News: Markets have gotten cheaper since the start of the year.


Cautionary News: When cash is giving as good as or a better return than our risk assets (see: Stocks) one must take notice.


Positive News: The decline we've seen from the all-time highs (1/4/2022) are best described as average.  May not feel that way after a few years* of less than average downside volatility in markets, but not every correction (-10% decline) brings a major washout in stocks.

*- The 2020 Covid Crisis the obvious exception in the last 3 years of lower volatility, but that market sell-off happened very quickly (with a recovery that happened almost as quickly) while most of our attention was on health and not markets.


Positive News (?): Predictive of nothing, but an informative data point none-the-less.  Historically, when negative sentiment has gotten this strong, we have been much closer to a low-side inflection point than not.  Buying in the worst of the red days would be akin to Warren Buffet's advice of "[being] greedy when others are fearful."


Cautionary News: This chart graphically represents your pain at the gas pump. Ugh!


Good News: Given all the rising costs, it should not be lost that the average American's balance sheet is in as good a place as it has been in the last 40+ years to better withstand the challenge.