Where is The Stock Market Heading This Summer?

unnamedThis is usually the time that the summer doldrums kick in and punish investors. Are we in for the same old thing this year

One of my favorite market indicators is “Sell in May and walk away”; meaning you should sell in May and sit out until November. It does work a lot of time, but not when everyone expects it to. There is an old saying that is king: “If it’s obvious, it’s obviously wrong!”

What I mean by that is that if everyone is expecting it, it won’t happen. And that’s where we were this year. The media hyped it and investors were ready for it.

Therefore stocks, as well as bonds, will do whatever possible to surprise the most people. So instead of a grueling sideways to down market, it looks to me like we will see the opposite. Nice steady returns barring any big surprises. Although, I would still expect a summer lull that generates some volatility and increased risk, especially for those nearing retirement or already retired.

The wildcard is the President’s two main agenda items: Healthcare reform and Tax Reform. If either of these get passed by Congress, stocks will benefit and bonds could suffer. On the other hand, if it looks like neither will pass while the Republicans control Congress, then investors will take it on the chin.

Most importantly, of course, is that you build your master plan to make money in any market so you get the best returns with the least risk possible. Or as I like to say, “Invest for need, not for greed”. Work with a Retirement Advisor that understands what it takes to be successful and tax strategy wise.

Feel free to contact me with any comments or questions

Smart Money Newsletter

Written By: Keith Springer

The Storm Before the Calm

The stock market has been pretty boring lately…which is a very welcome change after the pain and devastation of the recent correction and immense increase in volatility. After a meteoric rise last year, we hit a wall in February. We had the best January in over 20 years. Then we got the 5th worst February in […]

Read the full post

Market Crash or Correction…What is an Investor to do?

Let’s face it…this stock market is absolutely nuts and beyond scary. Is this is the beginning of a market crash, or just a correction? How do you protect your nest egg? Tune in this week as Keith discusses exactly what’s going on in the stock market and unveils specific strategies you’ll want to take now!

Read the full post


Supporting our Community:

Keith can be seen on: