Yellen Sends Shivers To Investors
In her first formal testimony as Federal Reserve Chairman, Janet Yellen did the unthinkable: she had the gall to suggest interest rates might rise someday….the nerve!
Of course I say this in jest, as interest rates have to rise at some point, but not until the economy is strong enough to stand on its own, which is what she meant. When that day comes, it will be good news. Let’s hope the market takes it that way.
At the moment investors are still in their post earnings nap period. In fact, the market has traded in a narrow range of less than 8% from low to high for several months now. This of course raises some concerns as market tops sometimes do occur when the market trades without much real movement to the upside. For instance, stocks topped on 10/9/2007 and went into a horrendous bear market.
On the other side is that the market had a nice 2013 and is just catching its breath and consolidating before it starts its next move higher. I am pleased that even with all the bad news, the market has held up well. We didn’t see a panic from Russia or the Yellen statement. That said, we are way overdue for a correction or an outright bear market, both of which are healthy and common, so don’t be afraid of them just be prepared!
This is most important if you are retired or planning for retirement because you are past the point where you can replace this money, so be sure to work with a qualified retirement adviser. In difficult times like this it is critical you make sure to adjust your portfolio to get the best returns with the least risk possible.
…… and that’s where we can help. To learn more about The Springer investment approach, which is our powerful proprietary Investment Management Strategy designed to manage risk and deliver returns in any market…and/or get a free second opinion on your portfolio, simply reply to this email, or give me a call for a no-cost no-obligation consultation today at (916) 925-8900