Initial claims for state unemployment benefits recently registered the lowest level since December of 1969. Employee wage growth is finally starting to pick up some steam after stagnating for years. Corporate America is in the early innings of a favorable new tax environment that should save them countless dollars. At surface level, the fair assumption is that these are all good things… but does the stock market always react favorably to what most view as inherently good news? Do negative headlines involving terms like “trade wars” or anything political override and negate all the positives in the economy? Scott Wren, the Senior Global Equity Strategist for Wells Fargo Investment Institute, provides his perspective on the subject in the below report.
While it’s natural to get concerned when stock market returns oscillate, it’s important to remember that it’s not only normal for markets to pull back from time to time but that it’s also a healthy function of the financial system. We know it isn’t always easy, but keep your investment time frame in perspective and focus on how you’re positioned relative to your needs and goals. Warren Buffett once famously said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” After all, it wouldn’t be much of a “market” if prices only ever went up, would it?
Some of What's Good is Bad...For Now by Scott Wren
The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgement of the author as of the date of the report and are subject to change without notice. Statistical information has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
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