The bull market that started in 2009 with an impressive six years of sustained growth has lost some momentum over the last five months. The S&P 500 has had a couple new all time highs year-to-date; however, these highs quickly fell back resulting in an overall flat market over the past several months. This can be very frustrating as you watch your investments simply tread water – but, historically, these sideways market time periods are quite normal.
The recent upward trend that lasted from 2012 until the end of 2014 is over, and now we are waiting to see what new direction a future trend will take. In a sideways market, more often than not, a new trend starts in the same direction that existed before the sideways market began. However, there are some headwinds that are becoming more prevalent (financial struggles in Greece, severe debt in Puerto Rico, and a slowing economy in China).
Given the sideways market and headwinds, it is important to stay smart and not panic—you will see why in the video. It is about 17 minutes long and is from Jason Wenk, the Chief Investment Strategist at Formula Folios. The recording took place earlier in May, but is still very applicable now. The video further explains the current investment environment and how our portfolio models have been staying cautiously smart in these uncertain markets.
Thanks for reading,