I’m glad we lowered the risk in the portfolios we manage before this recent decline. Frankly, wish I lowered a bit more.
The bonds are beginning to signal that a serious market correction may be in the making. That may not mean immediately sell all your stocks. But it does mean pay attention. It may be prudent for you to:
trim some of your holdings
or buy that indexed annuity you’ve been putting off
There are economists who are still quite cheery about the next year though. They think that this is just a hiccup caused by the trade “conversation”, especially with China.
There are economists who study economic cycles that point to trouble, possibly serious trouble for America in the next couple years.
I don’t have a crystal ball. Darn!
Whatever your position on which way the market goes, it is time to have a conversation with your broker or money manager if they are not proactively managing your portfolio. Or if you have the lion share of your financial assets in your 401k at work, get a second opinion.
After all, it’s your money.