March Market Update: Reading Past the HeadlinesInvesting Insights
Before we begin, our thoughts and prayers are with Ukraine and the brave individuals fighting to protect their homeland. It’s heartwarming to see the patriotism displayed by individuals from all walks of life.
On the other side of things, it’s frustrating to see how news outlets are running with this story to make quick money. The incessant fear-mongering of WWIII, increased costs of resources, and an imminent market crash are nothing but deceptive.
Recognize that clouds brought out by events that won't have a major impact in the end, often create the haze under which significant shifts unfold. While we saw a dip in the markets with Putin’s invasion, we then watched the US market go on a two-session run to the upside, quickly fooling those still thinking we are in a bear market. These are solid signs we are nearing the final stages of this very lengthy trade range.
Long trade ranges prepare the market for long treks to the upside of the mountain ahead. The economic data continue to fit nicely within the Barbell expectations and we do not see anything other than normal seasonality stopping those forces anytime soon. Indeed, we expect them to pick up speed going forward.
Reading Past the Headlines
Unfortunately, news outlets are incentivized to get you to click. As a result, we can’t take the media at face value. Let’s dig deeper into some of the recent attempts at fear-mongering, compared to reality.
News Headline: “Ukraine Crisis Upends Investing Playbook for 2022” (The Wall Street Journal)
Our Verdict: There’s no reason to upend your investment strategy. In fact, recent events only emphasize the value of holding your course. Remember, you haven’t lost anything until you sell. The only people losing in the markets right now are the ones abandoning ship at market lows.
News Headline: “Russia-Ukraine Crisis Shakes Markets, but Long-Term Outlook Is Better” (The New York Times)
Our Verdict: We stand with this sentiment — all of the lows we’ve seen recently are temporary. Markets almost always jump back following a war, and we’re already seeing signs of that here.
News Headline: “More Trouble for a Troubled Market” (The New York Times)
Our Verdict: Not quite. While we’ve seen a few minor setbacks, the market continues to bounce back, preparing for long-term growth. We also wouldn’t define the current market as “troubled”. Despite volatility, the market remains strong.
News Headline: “Ukraine Crisis Sends Tech Stocks to Bear-Market Levels for First Time in Two Years” (Barrons)
Our Verdict: Slightly true, but misleading. The tech sector dropped 20% at the beginning of Putin’s invasion, but just briefly. Markets have quickly recovered and haven’t dropped that low since.
Investment News You Can Trust
We always work to ensure the updates we share with you are accurate and easy to comprehend. We won’t burden you with jargon or clickbait. Just the straight facts.
Our clients have minimal exposure to the impacts of the Ukraine invasion and recent sanctions imposed on Russia because we prioritize investing in US-based stocks.
Our investment philosophy focuses on investing in stocks instead of mutual funds or ETFs. Specifically, dividend-paying stocks, selling goods and services to Baby Boomers and/or Millennials. To learn more about how our advisors can help simplify your investment strategy, schedule time to chat with our team of experts.
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