Announcer:
4 Your Money is brought to you by Nelson Corp. Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by Nate Kreinbrink, financial advisor at NelsonCorp Wealth Management. Welcome back, Nate.
Nate Kreinbrink:
Thanks for having me again.
Brandy Auterson-Hurst:
Financial markets have been experiencing a lot of volatility recently. How have you been viewing this recent activity?
Nate Kreinbrink:
Yeah, I mean, we’ve seen volatility in both the stock market and the bond market fairly high lately, which has led to some pretty choppy trading. It hasn’t been uncommon to see markets up a percent just to be down a percent the next day with the net overall performance being relatively flat over the past few months. Now, some of this activity has been led by the headlines with the bank failures and how this may impact the Fed’s movement with interest rates going forward. Some of it has been just simply noise.
We like to look through some of this noise to longer term trends in pricing. Simply put, if things have been going up for a while, the most likely path going forward would be up as well. And I think we’ve got a chart that kind of goes through some of this here. What we have here is the S&P 500, which is shown by the blue line on this chart over the past few years. The black arrows there signals starts in uptrends or downtrends during that same time period. If markets go up by 8%, it starts an uptrend. Markets go down by 7%, it starts a downtrend. Now, currently we’ve been in an uptrend since October of 2022. From here, from where we are at, we would need to see the S&P go down by another 6% to break the current uptrend that we’ve been seeing.
Brandy Auterson-Hurst:
Okay. So what does this mean for viewers investments?
Nate Kreinbrink:
Well, I think the most important thing to take away from this is investors need to simply have a plan. Having some type of guide that they can go to avoid possible mistakes like buying early or selling late, will help put them on the path moving forward.