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.
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.
