Take a look at last week’s market recap from Joe Gallemore, CIMA® Partner & Director of Investment Management for Argent Bridge Advisors. Watch the video now!
Stock indexes had a turbulent week as inflation remained very high from April to May. Most indexes shed 4-5% during the week and revisited the low points from earlier this year. Emerging Market stocks actually held up well and only inched down about -0.5%.
The reason for such a tough week was that inflation rose more than most people anticipated… and the ripple effects of this suggest a steeper exit for the economy and the market.
- Even bonds lost some ground as this news on inflation suggests that the Fed will likely raise base interest rates even faster.
This high inflation was very visible these last two weeks as $5 gas prices started making headlines around the country. Officially the national average price for a gallon of gas is $4.88 as of 6/10/22, a 60% increase from a year ago.
In the midst of all this, you may look at your accounts and wonder why there are not a lot of moves being made. Well, rest assured that behind the scenes we are being very proactive.
- During periods of market decline, we look to do tax-loss harvesting to improve your tax picture
- We are constantly monitoring the investment funds to identify times when it is opportune to rebalance accounts.
- And we’re also performing research on strategies to improve risk control, such as Buffered strategies which can help limit downside and also allow for nice upside potential.
- And last but not least, the foundational element that helps manage volatile times is your overall balance of stocks and bonds. This is a keystone of your investing plan which we evaluate every time you meet with your advisor.