Market Update - July 22, 2013
The good times of summer seem to be rolling in financial markets again. While not all asset classes are back to all time highs, some are, and those that aren't are getting pretty close again.
So, how long will it last? Is this just a head fake and a big drop right around the corner?
Truth is, the longer the market goes up, the harder the fall is likely to be when it does come. But that drop might not come anytime soon. 2013 may very well finish strong and 2014 could be the year. The thing is, forecasting the market is actually harder the longer we try to look into the future. It's sort of like forecasting the weather - mostly accurate when measured just a day or two out.
Using that analogy, in the short-term, the financial markets look pretty good. There's most likely going to be some small pull backs (think 2%-5%), but where things are today there are no glaring signs of a huge drop in the near term.
Check out today's market update video below to see why I feel this way:
I should warn, however, that markets can change quickly. There's a saying that is very important in this regard:
News trumps charts
So if there's some bad news from the Federal Reserve (they raise rates, for example), or a horrible natural disaster, etc; then all bets are off. So long as none of that happens though, and it's actually a very nice time to be an investor.
I'll be back online later this week with my monthly Tactical Asset Allocation update. Until then, have a great week!