Keeping yourself removed from recent media reports on, stock market performance, political issues, and other ‘news-worthy’ stories might be best. Media hype exposure can negatively impact the American public and their investment decisions. During the last recessionary period, the media’s reporting caused widespread panic as millions of Americans. Many chose to liquidate their accounts out of fear of ‘losing their money.’
As we approach a possible secondary recession, remember that liquidating shares in a downward market can cause financial harm. It is up to you to investigate the validity of media hype exposure. Always consider how expensive market information is if you react prematurely to it. Together, we can determine an overall plan for your investments, re-examine your goals and plan accordingly.
The relationship between percentage changes and basis points (BPS) determines a change in a financial instrument, such as the stock market and bond yields. The Basis Point (BPS), is used to calculate changes in interest rates, equity indexes, and the return of fixed income securities. Regardless of daily BPS movements, a recession is when the economy declines significantly for six or more consecutive months in five key economic areas: Real Gross Domestic Product (GDP), income, employment, manufacturing, and retail sales. According to some economists, we are entering into a recessionary period as indicated by an inverted yield curve. The question is, how long will it last and are we truly entering a recession?
When it comes to money and investing, be diligent on how you choose to react. Have a conversation with me regarding your portfolio. This is the best way to alleviate any concerns you may have regarding media reports. Consistent investing in a down market can yield rewards later when purchasing shares at a reduced price. The only caveat is if you need to liquidate shares during a down market and recessionary period.
Additional Disclosure: These are the opinions of the author and not necessarily those of the Registered Investment Adviser or Broker/Dealer, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.
First Fruits Asset Management has been in the financial services profession since 2007. The business is built on a foundation of partnership with clients. We work together to create a personalized financial plan and then review and revise the plan as situations and/or goals change over time. Contact us today to learn more about how we can build a partnership with you today.