{"id":63,"date":"2018-02-13T00:00:00","date_gmt":"2018-02-13T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2018\/02\/13\/correction-wow\/"},"modified":"2018-02-13T00:00:00","modified_gmt":"2018-02-13T00:00:00","slug":"correction-wow","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/correction-wow","title":{"rendered":"Correction &#8211; WOW"},"content":{"rendered":"<h1 style=\"text-align: center;\"><span style=\"color: #333399;\"><strong>Wow, That Was Fast!<\/strong><\/span><\/h1>\n<p><span style=\"color: #333399;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #333399;\">Last Thursday, February 8, 2018 we entered \u201cCorrection\u201d territory. A correction typically means an asset has declined by 10% in market value. This may be one of the fastest 10% corrections in history, bearing in mind that the Market Indexes hit their current year high, very recently on January 26<sup>th<\/sup>.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><span style=\"color: #333399;\"><strong>Why So Fast?<\/strong><\/span><\/h1>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">Perhaps the \u201creasons\u201d are some of the following:<\/span><\/p>\n<ul>\n<li><span style=\"color: #333399;\">A <strong>10 year US Treasury Yield<\/strong> rise from 2.41% on December 31<sup>st<\/sup> 2017 to approximately 2.85% last Friday.<\/span><\/li>\n<li><span style=\"color: #333399;\"><strong>Wage growth<\/strong> recently reported, exceeded most expectations.<\/span><\/li>\n<li><span style=\"color: #333399;\">Somewhat <strong>high valuations<\/strong> on most <strong>Stock Indexes<\/strong><\/span><\/li>\n<li><span style=\"color: #333399;\">Most believe the <strong>Federal Reserve will increase rates<\/strong> 3 to 4 times and that it\u2019s not quite priced into the Bond and Stock Markets.<\/span><\/li>\n<li><span style=\"color: #333399;\">The Fact the Federal Reserve <strong>is no longer purchasing bonds<\/strong> for their balance sheet and they are now letting a percentage roll off.<\/span><\/li>\n<li><span style=\"color: #333399;\">The thought that the recent <strong>Tax Act<\/strong> will accelerate the economy leading us into an inflationary period.<\/span><\/li>\n<li><span style=\"color: #333399;\"><strong>Computer<\/strong> generated stock sales.<\/span><\/li>\n<li><span style=\"color: #333399;\">Investor\u2019s <strong>attitudes<\/strong> were becoming very optimistic.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\"><em>My guess<\/em> is that each item on the above list was part of the cause.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">I\u2019m confident you can add to the list.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><span style=\"color: #333399;\"><strong>Where Do We Go From Here?<\/strong><\/span><\/h1>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">\u201cCertainty\u201d is absent in knowing anything truly specific about the direction of the Stock and Bond Markets. The majority of Corrections have not turned into Bear Markets. A Bear Markets is marked by a 20% or more decrease in Asset value.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">At this point, we expect corporate earnings to remain strong as well as short term economic growth. We do need to watch the level of rise in interest rates. Higher rates can translate into increase costs for Corporations to borrow, potentially reducing profits and slowing growth. Higher rates can also lead to higher Mortgage and Automobile Loan Rates which can slow down these two important sectors of our economy. \u00a0It looks as if the recent level of the US 10 year of 2.4% is looking for a new range. How much higher will be important.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><span style=\"color: #333399;\"><strong>What Should You Do?<\/strong><\/span><\/h1>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">As always, your portfolio\u2019s Asset Allocation should be aligned with your specific need for income and growth. Having a diversified portfolio has proven over time to be an excellent way to manage market volatility.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">Rebalancing your portfolio periodically also may help your allocation stay consistent with your acceptable level of risk.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\">For additional information on our Investment Process, please click here, <strong><a style=\"color: #333399;\" href=\"https:\/\/retirementrefined.com\/investment-management\/\">Investment Process<\/a><\/strong>.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #333399;\"><em>*Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results. <span style=\"color: #333399;\"><em>Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.<\/em><\/span><\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wow, That Was Fast! \u00a0 Last Thursday, February 8, 2018 we entered \u201cCorrection\u201d territory. A correction typically means an asset has declined by 10% in market value. This may be one of the fastest 10% corrections in history, bearing in mind that the Market Indexes hit their current year high, very recently on January 26th. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/63"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}