September Market Selloff and How To Protect Your Portfolio
To combat high inflation, the Bank of Canada and the Federal Reserve will have to raise rates aggressively in the months ahead. Both governments have have made it clear they plan to increase the rates to at least 3.5% by the end of 2022.
The stock markets this year reflect how investor think and feel about higher interest rates. Higher rates reduce the value of future corporate profits, from which stocks ultimately derive their worth. This ultimately translates to the profits that businesses are expected to earn in the future are worth less today — and thus stock prices decline. Investors are certain of a recession and a growing list of Wall Street investment firms are warning of a looming economic downturn.
In September both Canadian and US governments are expected to raise rates by .75 bps which will and is creating significant market volatility.
US Federal Reserve Chairman Powell’s speech at Jackson Hole pushed the market decisively into the negative territory when he said several times, people will experience "PAIN" in the coming months.
Now more than ever its important to: ✔️ Review your Risk Tolerance ✔️ Review your Asset Allocation and consider if nearing retirement to be more conservative ✔️ Talk with your advisor more frequently ✔️ Have a written financial plan
Suggested Videos: ➤How to Protect and Grow Your Investments in Times of Market Volatility https://youtu.be/gx-KH7V04Ds
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to schedule your confidential meeting with me. You can schedule your meeting here: https://calendly.com/aaronwealthmanagement
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