INSIGHTS
JUN
24
COSTA’S CORNER
The waiting is the hardest part
Every day you see one more card
You take it on faith
You take it to the heart
The waiting is the hardest part
I just had to use that Tom Petty song today. Today, this week and this month will be about waiting.
Last week the Fed hinted at potentially dropping interest rates to help stimulate the economy. The President decided against a retaliatory strike against Iran after the Iranians shot down a US drone over International waters. The administration is contemplating more sanctions and shutting out Chinese companies from buying US technology.
Everything is a waiting game and markets will be in that same mode as we wait for this set of data or that announcement. This is typical of the summer and should be of no surprise to anyone that we are going through this period of waiting and reacting.
Markets tend to get like this when they are in unchartered territory. US equity markets are in record territory and they don’t know what to do next.
So, be prepared for a bit of a high wire roller coaster ride as reactions to different events we have been waiting for get overplayed.
This scary volatility is what day traders wait for and investors hate. Sudden price movements just after a concluding moment in an anticipated event. This is nothing new and if you are a true investor, you just sit these moves out and pick your in and pick your out.
One thing that you probably should think more about is the bigger picture and like everything else in investing, that’s a gamble.
How will further sanctions affect the global economy?
How will the roll out of 5G technology without Chinese components work?
Do we actually need a rate cut at this point of the economic cycle and how will that affect different asset classes?
Being able to look at things objectively and with some research you can come up with probable outcomes and their effects on your portfolio. Once you have it figured out, you should put in motion a strategy that will protect you and possibly give some substantial gains. That’s investing for the future.
I am a firm believer in the long term and at each stage of your investing life you should know what your time horizon is and plan accordingly.
While the waiting game is part of our daily lives, planning for it should also be a major component as well. Being prepared and tweaking as necessary is how you survive long term and come out at the end better off.
Sounds like a book in the making or an ad for a wealth advisor but no matter how complicated the World becomes, investing for the future really has not changed that much for hundreds of years.
My motto is and always will be, “Simplicity is never complicated”
Neither is my model portfolio.
50% Stocks
25% Fixed Income
25% Cash
Every day you see one more card
You take it on faith
You take it to the heart
The waiting is the hardest part
I just had to use that Tom Petty song today. Today, this week and this month will be about waiting.
Last week the Fed hinted at potentially dropping interest rates to help stimulate the economy. The President decided against a retaliatory strike against Iran after the Iranians shot down a US drone over International waters. The administration is contemplating more sanctions and shutting out Chinese companies from buying US technology.
Everything is a waiting game and markets will be in that same mode as we wait for this set of data or that announcement. This is typical of the summer and should be of no surprise to anyone that we are going through this period of waiting and reacting.
Markets tend to get like this when they are in unchartered territory. US equity markets are in record territory and they don’t know what to do next.
So, be prepared for a bit of a high wire roller coaster ride as reactions to different events we have been waiting for get overplayed.
This scary volatility is what day traders wait for and investors hate. Sudden price movements just after a concluding moment in an anticipated event. This is nothing new and if you are a true investor, you just sit these moves out and pick your in and pick your out.
One thing that you probably should think more about is the bigger picture and like everything else in investing, that’s a gamble.
How will further sanctions affect the global economy?
How will the roll out of 5G technology without Chinese components work?
Do we actually need a rate cut at this point of the economic cycle and how will that affect different asset classes?
Being able to look at things objectively and with some research you can come up with probable outcomes and their effects on your portfolio. Once you have it figured out, you should put in motion a strategy that will protect you and possibly give some substantial gains. That’s investing for the future.
I am a firm believer in the long term and at each stage of your investing life you should know what your time horizon is and plan accordingly.
While the waiting game is part of our daily lives, planning for it should also be a major component as well. Being prepared and tweaking as necessary is how you survive long term and come out at the end better off.
Sounds like a book in the making or an ad for a wealth advisor but no matter how complicated the World becomes, investing for the future really has not changed that much for hundreds of years.
My motto is and always will be, “Simplicity is never complicated”
Neither is my model portfolio.
50% Stocks
25% Fixed Income
25% Cash