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As with many things in life, knowing what we're supposed to do and actually doing it are two separate things. This is true for our health, relationships, careers, and of course, our finances. When it comes to investing, it's well known that properly diversifying and staying invested are the best ways to achieve long-term financial goals.
Global capital markets have felt more fragile recently, with investors concerned about the economy, the possibility that the Fed may be behind on cutting rates, and some disappointing tech earnings. Ironically, despite the market volatility last week, major indices were mostly unchanged from Monday to Friday.
To paraphrase Ernest Hemingway, risk in the stock market often occur "gradually, then suddenly." Said differently, risk happens slowly, then all at once. Financial markets are on edge as investors adjust to a changing economic landscape.
Large-cap tech stocks have driven much of the market's gains, but emerging signals show other sectors and styles are starting to participate meaningfully.
As the second half of the year begins, how can investors maintain perspective around the strong market rally, interest rates, and the upcoming election?
The S&P 500 index closed above 5,000 earlier this year and has set new all-time highs less than three years after it first crossed the 4,000 mark. While some are understandably nervous any time the market is near record levels, investors also tend to grow more bullish as the momentum continues.
Although a lot can happen between now and November, some investors are naturally concerned about politics' impact on the stock market and economy. After all, the political climate has never felt more polarized due to elections and disagreements in Washington around the budget, immigration, foreign policy, and more. How can investors stay balanced during this year's presidential election?
Taxes are no one’s favorite topic, but their importance cannot be overstated as tax policy affects every aspect of our financial lives including how much of our paychecks, investment gains, and dividends we keep.
With markets nervous about stubborn inflation, a gradually slowing labor market, and the timing of the first Fed rate cut, investors are more focused on this corporate earnings season than usual. While the economy has avoided a “hard landing,” corporate earnings only began to rebound in the second half of 2023.
In times of market uncertainty, investors often seek the safety of cash. This has been true over the past several years as markets have swung due to the pandemic, geopolitical events, Fed rate hikes, inflation, gridlock in Washington, technology trends, and more.