May Losing Streak in June JeopardySubmitted by O'Grady Financial Group on June 6th, 2019
Here’s some financial tidbits…a May bouquet of meaningless factoids…served up like a dozen roses…something to chase the blues away…but only temporarily…because the roses are already dead…just like these factoids…they’re from the past…making you feel better about the past…and have absolutely no bearing on the future.
Anyway…it’s fun to stop and smell the factoids.
The market, as measured by the S&P 500, wraps up the month of May on a 4-week losing streak. The longest losing streak since October of 2014.
Since the start of this bull market in 2009, the S&P 500 has closed down five weeks in a row…only once. A 6-week losing streak in 2011.
Trade tariffs and slowing economic growth creating market uncertainty most of May. But the Federal Reserve hinting that interest rate cuts are a coming if needed… sending stocks higher early this week.
As of this recording, we’re still awaiting this weeks finish. Whether up or down, losing streaks like this are rare. According to LPL Research, the S&P 500 was higher a month later four out of five times following four week losing streaks this bull market.
What does this mean for you and your money? Not a whole heck of a lot. It’s nice to stay informed so you’re ready to rock the current events conversations at summer barbecues. But you know, market timing and economic forecasting are not part of your long term investing conversation.
We’re investors, not traders or speculators. We believe in capitalism and the free market system. And if your goals haven’t changed…neither does the plan or the portfolio.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.