{"id":420,"date":"2020-09-08T00:00:00","date_gmt":"2020-09-08T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2020\/09\/08\/correction-change-of-leadership-or-something-else\/"},"modified":"2020-09-08T00:00:00","modified_gmt":"2020-09-08T00:00:00","slug":"correction-change-of-leadership-or-something-else","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/correction-change-of-leadership-or-something-else","title":{"rendered":"Correction, Change of Leadership, or Something else?"},"content":{"rendered":"

The market decided not to pay attention to the job reports released last week.\u00a0 All major stock markets fell with no regard to the unemployment rate dropping to 8.4%, which by far exceeded expectations.\u00a0 Last month, we added 1.4 million jobs. We have now recovered 22 million jobs lost because of Covid-19.<\/p>\n

For the week, the Dow dropped (1.73%), the S&P 500 (2.27%), the Nasdaq Composite (3.27%) and the Russell 2000 (2.70%).\u00a0\u00a0 International Stocks were also down around (2%).<\/p>\n

The Barclays Aggregate Bond Index increased slightly by .15%.\u00a0 Hey, the money from stock sales needs to go somewhere!!!<\/p>\n

Stock Correction\/Change of Leadership?<\/strong><\/p>\n

It\u2019s no secret our stock market has been forecasting a quick and robust recovery from the pandemic.\u00a0 Many technology stocks and other \u201cstay at home\u201d stocks were bid up to nose bleed levels.\u00a0 Tesla, for example, hit a post stock split high of 502.49\/share.\u00a0 This morning, in the pre-markets as I\u2019m typing, Tesla is trading around $360\/share.\u00a0 That\u2019s an approximate 28% pullback in 3 days.\u00a0 Has Tesla\u2019s true value lost 28% in 3 days, or perhaps the stock rising to 500 was overly optimistic?<\/p>\n

\"\"Stock market corrections are normal and periodic.\u00a0 They can bring companies values back to what makes sense, and is reasonable.\u00a0 After seeing how quickly the markets moved higher, additional selling pressure should<\/em> be expected.\u00a0 Will this turn out to be a true correction?\u00a0 As always, time will tell.\u00a0 This could happen quickly! Often times during a correction, stocks that lagged on the way up become the new leaders.<\/p>\n

The \u201cvalue\u201d side of investing has been deeply in the red, even after the recent run-up.\u00a0 There are some signs that value may actually lead, or at least market perform, after the pullback.\u00a0 These sectors and stocks should certainly benefit from the continuing improvement and re-opening of our economy.\u00a0 So far in September, value is showing out-performance compared to growth, as value is flat to slightly down for the month with growth stocks down between 3.5% and 4%.<\/p>\n

I\u2019ve held the philosophy for many years that attempting to predict the leaders is nothing better than an educated guess.\u00a0 The stock portion of portfolios, especially retirement, should be evenly invested between growth and value.\u00a0 This has proven to be valuable for many years because no matter what is leading, you\u2019ll be participating.<\/p>\n

Social Security Checks\/Benefits<\/strong><\/p>\n

I\u2019m frequently asked, what day of the month will I receive my Social Security retirement checks? \"\"<\/p>\n