In the last few weeks, we have seen a significant increase in stock market volatility, with the Dow Jones Industrial Average frequently rising and falling hundreds of points in a single trading day. This can feel unsettling.
Let’s take a minute and talk about what’s happening and what it means for your retirement.
The recent volatility appears to be a case of good news is bad news. The latest employment report showed job creation and wage growth that triggered inflation fears. Generally, inflation and the attendant rise in interest rates tend to slow economic growth. And the markets are reacting.
Overall, RPA remains positive on equities. Corporate earnings and economic fundamentals keep posting stellar figures, and we don’t see any negative geopolitical or policy issues on the horizon. That said, you can expect more volatility in the weeks and months ahead.
If you are properly invested for your personal circumstances, short-term stock market volatility should not impact your long-term retirement investment strategy.
Are you properly invested for your personal circumstances? If you’re not sure, let us know and your RPA Financial Advisor will contact you.