Written by Tyson Ray, FORM Wealth Advisors | CFP®, CExP®, CIMA®
If you know me and/or if you follow my blog posts, you know I’m all about perspective. We get so caught up in the busyness, and business, of life and work that sometimes we lose sight of what’s really important.
Recently, my son took an internship in Israel, and he was supposed to be there for the month of June. However, because of the unrest in that part of the world, he spent several days in bomb shelters. We were able to get him out of Israel and back home, but it was a scary time for all of us. It gave us some perspective, which I now want to share with you.
The markets are always going to go up and down. We recommend staying the course. Ignore the market fluctuations and focus on your long-term goals. History shows us that bailing out of the market during a downturn just leads to more losses. Try to tune out the constant noise about what the markets are doing.
Also, it’s summer. Let us worry about what the markets are doing, and go out and enjoy yourself!
One of the valuable benefits of partnering with our advisory team is that you can let us follow what the market is doing while you get out there and have some fun with your friends and family. That is what’s really important — creating new memories and sharing time with the people you care about the most.
Right now, the market is doing surprisingly well anyway.
The Israel–Hamas war has been ongoing since October 7, 2023, and general unrest in that region has been ongoing much longer than that. Also, there is a lot of uncertainty because of tariffs, legislation related to taxes and escalating tension with Iran.
Despite these situations, however, the markets rallied quite a bit in June after the April lows. And then in July, the S&P 500 and Nasdaq have reached new record highs. Several factors are contributing to the positive market sentiment, including strong earnings reports from major tech companies and optimism surrounding potential trade deals.
Moving forward, we can expect a little pullback as a result. The traditional “summer rally” period is nearing its end. During an average year, a weak period for stock-market returns begins in late July and typically persists through mid-October.
If you work with us and have a financial plan we have customized to guide you, then we have been setting aside the money we think you need based on that plan, without having to expose it to the market. If you catch yourself worrying about market returns or about the uncertainties of situations you can’t control, give us a call. We will give you some perspective, encouragement and reminders that we are on top of everything here…so you can go enjoy the summer!
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Disclaimers: Market commentary is provided for informational purposes only and does not constitute a recommendation to buy or sell any security. Past performance is not indicative of future results. While historical trends suggest these patterns mentioned, market conditions can vary, and no outcome is guaranteed.
