Economic & Financial Speedometer. Positive result expected by year-end.

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August Speedometer                                                                                                        Click to enlarge image.

 

  • 5.8% drop in the S&P 500 indicates the possibility of a rough ride during the year, but a positive result expected by year-end.
  • We believe that global economic fundamentals remain largely positive.

Should a sharp pullback from the peak in the U.S. stock market be viewed as an unexpected event? The answer is no. Despite its swiftness, long-term equity investors should be well-acquainted with this kind of volatility. What is unusual about the market’s behavior is the length of time that has passed since the last dip of 10% or more, which occurred back in the third quarter of 2011. Part of the price of enjoying the competitive returns of equity investments over the long term is to endure the occasional bouts of stomach-turning declines. To settle their stomachs, investors use high-quality bonds in varying quantities as the Pepto-Bismol of their portfolios.

Bruce Simon, CFA, Chief Investment Officer, City National Rochdale

 

 

City National Rochdale is outside of and separate from our relationship with First Allied Securities.

Written by Jaimie Blackman

Jaimie Blackman

Jaimie Blackman has created Sound Financial Decisions ™ powered by MoneyCapsules®, to help guide business owners through the complexities of succession planning.

Jaimie writes “Smart Succession”, a monthly column in Music Inc., and also writes a bimonthly column for Canadian Music Trades magazine. He has spoken at NAMM U Idea Center, and at Yamah’s Succession Advantage.

As a financial literacy educator he has taught at New York University and has lectured at the 92nd Street Y, Marymount Manhattan College, and CUNY.

As President of BH Wealth Management, Jaimie also helps his clients implement investment and insurance solutions which are aligned to their personal values. Visit bhwealth.com to learn more.

To subscribe to Jaimie’s Succession Success: Insights for Music Retailers, visit moneycapsules.com.

The purpose of this post is to educate. Our content should not be construed as advice. If legal, tax or other advice is required by the readers, professional advice should be sought.

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