Financial Figures

Making sense of this mess

War, COVID, inflation, a rocky economy (in all parts of the world), supply chain issues and ongoing uncertainty with China make today a world we’ve never seen before. More than ever, global situations are affecting us at home. It’s not just international markets, either. We’ve become so connected no one is immune to the challenges facing everyone. Have you tried to buy a car lately? If you think those prices are high, you should see how Roanoke County is valuing automobiles for property taxes. Forget depreciation and Blue Book value, that new or used car you just bought is appreciating daily, at least according to the “collector of the revenue.”

Hold or sell?

The common advice when experiencing the kind of stock market tumble we saw starting in April, is to hold. That makes sense in normal times. Historically bear markets recover to levels higher than prior bull market gains. Selling’s usually a bad idea during volatility. If timing the market worked, day traders would be featured in Forbes. Wait long enough and everything will stabilize.

But what we’re experiencing today isn’t like anything we’ve seen before. Many believe we’re in for more retraction, with some projecting an additional 10-20% pull back before the year ends. Even businesses that are amassing huge profits during these troubling times can’t get the parts or people they need to meet demand.

There will be winners and losers when things settle down. It probably won’t be the traditional players. Given all the upheaval in the marketplace and the world, it might make sense to rethink the standard status quo strategy. When you look at the market, you can see a shift in the types of industries logging successes. That may not be what you’re holding.

In every bear market, there are items that perform well. They’re usually not the same as those that do so in bull markets. It might be worth taking a look at some of the old, conservative staples that get classified as necessities. It’s anybody’s guess what the market will do next, but if your plan is to hold on tight to what you have, reconsidering some of your investments could help you do that.

There will be winners and losers... it probably won't ”“ be the traditional players. FINANCIAL FIGURES

By Michael Shelton

Executive Summary:

Just when you think things might stabilize, another surprise hits us. No wonder people are having trouble figuring out what to do with their money.

Michael Shelton is a financial retirement counselor. Reach him at Michael@360Wealth Consulting.com