Sign up to save your podcasts
Or
Share Is Now the Right Time to Get into the Markets?
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Is Now the Right Time to Get into the Markets?
With risk assets having pushed into bear market territory in May, some investors are asking whether now is the right time to get into the markets. On one side of this debate is a group of investors who look at the recent pullback as an opportunity to buy securities at a discount. On the other side is a set of investors concerned that prices will only move lower from here. Make no mistake, this question is relevant to investors today not only because of the magnitude but also because of the breadth of recent market declines.
For example, if we consider year-to-date performance for the S&P 500 index, what we find is that the first one hundred days of this year's market performance have been brutal. Indeed, through the end of May, the data show that U.S. Large Cap stocks have had their worst year-to-date decline in the past forty years. Adding insult to injury, investors have had little place to hide given the fact that stocks and bonds across U.S. and international asset classes have all posted losses this year.
Why are markets selling off across the board? Well, the reasons behind this seemingly correlated selloff across major asset classes are manifold. But at its core, persistently high inflation and the prospects for an impending U.S. recession given ongoing logistics issues, rising prices, healthcare concerns, and the war in Eastern Europe have made market participants more sensitive to the effects of less favorable central bank policy and the weaker corporate earnings outlook.
So, is now the right time to get into the markets? Well, in our latest podcast, we discuss why the question of whether to get into (or out of the markets) is a misnomer when it comes to the success of a long-term investor. Indeed, we illustrate how trying to time entry (or exit) points and missing even ten of the best days in the markets could be a setback for growing or preserving your investment portfolio for the long term.
What's the solution?
Well, rather than asking whether the timing is right, we lay out a framework for developing and maintaining a disciplined investment process to weather market uncertainties.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
View all episodes
By Peter DonisanuWith risk assets having pushed into bear market territory in May, some investors are asking whether now is the right time to get into the markets. On one side of this debate is a group of investors who look at the recent pullback as an opportunity to buy securities at a discount. On the other side is a set of investors concerned that prices will only move lower from here. Make no mistake, this question is relevant to investors today not only because of the magnitude but also because of the breadth of recent market declines.
For example, if we consider year-to-date performance for the S&P 500 index, what we find is that the first one hundred days of this year's market performance have been brutal. Indeed, through the end of May, the data show that U.S. Large Cap stocks have had their worst year-to-date decline in the past forty years. Adding insult to injury, investors have had little place to hide given the fact that stocks and bonds across U.S. and international asset classes have all posted losses this year.
Why are markets selling off across the board? Well, the reasons behind this seemingly correlated selloff across major asset classes are manifold. But at its core, persistently high inflation and the prospects for an impending U.S. recession given ongoing logistics issues, rising prices, healthcare concerns, and the war in Eastern Europe have made market participants more sensitive to the effects of less favorable central bank policy and the weaker corporate earnings outlook.
So, is now the right time to get into the markets? Well, in our latest podcast, we discuss why the question of whether to get into (or out of the markets) is a misnomer when it comes to the success of a long-term investor. Indeed, we illustrate how trying to time entry (or exit) points and missing even ten of the best days in the markets could be a setback for growing or preserving your investment portfolio for the long term.
What's the solution?
Well, rather than asking whether the timing is right, we lay out a framework for developing and maintaining a disciplined investment process to weather market uncertainties.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors