📉 What Slumping U.S. Economic Indicators and Growth Mean for Investors
📉 What Slumping U.S. Economic Indicators and Growth Mean for Investors
Stock market volatility has once again picked up as recent economic data have led markets to reverse course after a strong start to the year. While investors have grown accustomed to daily swings, it's still important to remember that stock market fluctuations are unavoidable. After all, it's the willingness and ability to withstand pullbacks in the short run that allows investors to be rewarded in the long run. During periods of uncertainty, understanding the underlying trends driving markets can help investors to maintain perspective.
We discuss in this episode of The Wealth Effect Podcast:
📉 Leading Economic Indicators
🏭 Manufacturing Economic Activity Indices
📊 Stock Market Volatility
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
The economy has decelerated in recent months
Manufacturing activity has slowed but services are still growing
Despite recent swings, markets have been calmer in 2023
The bottom line: Investors should remember that markets have regained significant ground since last October. Diversified portfolios are mostly in the black this year, and the S&P 500 has only experienced one 5% pullback in 2023. However, the deceleration in the macroeconomy will likely be with us for the foreseeable future and will continue to cause periods of market volatility.
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