In recent days, the market has seen increased volatility with multiple 500+ point swings in the Dow Jones Industrial Average as a battle rages over where the next big move will take us in 2018. To put that into context, the largest swing up or down last year was 373 points negative on May 17th, 2017. Tariffs, inflation, data breaches and potential trade wars descend us toward correction levels, while global economic data points including jobs, housing, GDP growth and earnings drive us toward potential new highs. We have seen this conflict play out in the recent volatility that has not been experienced in quite some time. This is a natural part of the market cycle and we are eager to take advantage of a sustained 13-15% pullback, if we get the opportunity. Earnings season kicks off later this week, and signs point to a positive report. Earnings drive prices, and if we get a group of solid announcements it could help drive stocks higher, potentially smoothing out the negative headwinds. We have entered an ‘event driven’ market and believe volatility will be the story for the near future. Taking a balanced approach with predictable income production is a smart way to navigate through the turbulence.
Please take a look at the article below regarding the upcoming earnings season...
*All market data is from Bloomberg Markets (www.bloomberg.com).
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