Market Musings 8/5/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets plummet as #Recession fears spill over from last week. What’s going on?
Well, the market has been on an absolute tear YTD…
High interest rates had inflation pulling back while labor and consumer remained strong.
So, investors began expecting a #Goldilocks soft landing where the economy slows to curb inflation, but we can restart it again before we turn negative－avoiding a #Recession.
However, that changed last week with the new jobs data.
First June’s jobs were revised significantly lower.
Then, July’s came in significantly lower than that.
And finally, unemployment spiked.
So markets went into panic mode falling -6% over the last 3 days.
Our position has always been the market was getting ahead of itself and a correction sooner rather than later is healthy.
Also, keep in mind the bigger picture with the market still up 9% YTD after a monster 24% last year.
We’re already seeing some recovery in afterhours－so hopefully we’ll see the market stabilize tomorrow.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Pixabay.