Do You Have The Stomach [For The Stock Market Roller Coaster]?

by Financial Design Studio, Inc. / December 6, 2018

Are you someone who likes the Tea Cup rides at festivals or theme parks?  Maybe you prefer the roller coasters that move through highs and lows at rapid speeds?  Whatever your stomach for these rides, does it correlate to your stomach for the stock market turns and ups and downs?

Promising News & Volatility In The Stock Market

After some promising news last week when the market moved higher, the large swings of volatility have returned.  We believed progress was being made with the Fed easing the rate increases. We also hoped that real progress was happening with China from the initial comments made after the G-20 Summit this last weekend.  Recall last week’s article where we suggested there might just be more questions than answers in the supposed good news.

President George H.W. Bush

Early this week we learned of the passing of President George H.W. Bush.  When we learned of the President’s death other news became silent in order to respect the life of a man who served our country.  It was said that there wouldn’t be much shared about the G-20 Summit meeting in order to show respect. Since there wasn’t much said the market doubted any progress was really made.  And perhaps with the differing stories we are hearing there wasn’t much agreed upon. As these trade issues continue just be aware that if solved the market will move higher very quickly.

Long Term View

With the recent market movements down investors are either continuing their long-term view or growing more anxious that it might take some time to see the market recover.  If you find yourself growing more weary week after week as the market moves lower remember that if the market moves higher you may not be able to benefit from a large decision time to get back into the market.  For this reason, it is critical that you understand where you are in your plan so you know how much risk is necessary for you to take.

What Does This Mean For Your Investments?

Can you continue to hold your investments through to a recovery?  Or do you need to make some changes because you know funds will be needed in the days ahead and you want to make sure your funds are available when the time comes?  We help our clients consider their options through the years as they make these decisions.

Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.

Ready to take the next step?

Schedule a quick call with our financial advisors.

Recommended Reading

social security increase

Social Security Cost of Living Increase in 2022

High inflation is going to lead to a significant Social Security Cost of Living Increase in 2022. How much of an increase can you expect, and how does this impact the Social Security system? We tackle these questions and more in this week's post.

Is the Bear Market Over?

Markets have rallied off the bottom causing investors to ask, "Is the 2022 bear market over?" We look at what's happening with the economy and what the bond market is telling us about a potential recession. Then we dive into different types of bear markets and give our perspective on what to do if the...

Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.