"Psychic Fair Canceled Due to Unforeseen Circumstances"Submitted by Blue Rock Wealth Management on October 1st, 2015
"Psychic Fair Canceled Due to Unforeseen Circumstances"
~Sign outside Coffee Shop
[location & identities concealed to protect the psychics involved]
Seeing the future is hard even for psychics. I saw those ironic words written on a sign on one of those funny signs lists and couldn't help but think of this intricate ironic dance taking place between the Federal Reserve and global markets.
In September, global stocks went down sharply when the Federal Reserved decided to keep interest rates steady rather than raise them as expected. Stocks moved upward when Federal Reserve Chair Janet Yellen commented that they expect to raise rates likely later this year but lost the enthusiasm and gave back all of those gains and then some. Investors seem to be looking to the Fed to give them an indication that the economy is improving. Ironically, the Fed may be looking for stability or even improvement in the stock market as a sign that the economy is strong.
If reviewing your third quarter statement tests your resolve, remember that declines like this are normal, even expected. Luckily, you don't have to be psychic to know it will happen at some point. Even in good years, we often see declines on average of 14%. The last few years of stock market increases have spoiled us a bit but we believe this marks a return to normal volatility. That is simply how we see this current market movement. It is unpleasant but not a reason to change course.
We understand that these down times are painful and know from studies that the pain of loss is 3x as difficult as the thrill of gain. It's during these times that investors often make emotional decisions which are rarely the right move. This is the time in which you should rely upon your advisor to guide you. Should you have questions or concerns, please do not hesitate to reach out.