The Weekly Update 7/26/2024
Summer Doldrums = Volatility
Money Flow volumes tend to greatly reduce in the summer. This tends to create volatility both up and down in valuations. Just be mentally aware of this reality, so you don’t let your favorite news channel wedge itself between you and your bigger financial future!
This summer it is important to make note of:
- What is not in the news! What is not in the news is that “tiny” (ha!) $160 billion in new U.S. manufacturing plants that are months away from going “lights on”! I have had clients in both Nevada and Arizona call just to tell me how off I am. As in, too low! These are manufacturing facilities measured in desert miles. Forget about those you see on Airport Boulevard! Huge!
- What is in the news! Decades ago, Yardeni Research did a research piece on mainstream media cover pages and the fact that when you see many one-way articles – the winner over time tends to lean in the opposite direction.
Example: Barron’s cover on June 1st, 2024, had a picture of Fed Chairman, Jerome Powell with the headline, “Why he Won’t Cut Rates This Year”. I will take a $1 USD bet all day long that by the September meeting, or earlier, the Fed will be reducing rates once, maybe twice this year. Just call and we can have a laugh and jot down the $1 bet!
At TWSG, we are well allocated for this and have our well thought out Investment Selection Matrix™, investment menu working in our collective TWSG family’s asset allocations.
I’m interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Stock investing includes risks, including fluctuating prices and loss of principal.
Asset allocation does not ensure a profit or protect against a loss. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.