June Market Outlook

“Go to cash and get out of the markets as you are going to lose all of your money….”
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Negative headlines, for a fact, catch your attention twice as much as positive headlines, especially when it comes to the stock and bond markets. The media’s job is to sell their stories, and negative stories sell much more than positive stories. I have recently returned from 3 national economic/investment conferences, in which we had many experts speak to us on the current economy and investment markets. I would like to offer our clients and friends, balanced facts about the markets:

1. S&P 500 has risen by 1% during recessions dating back to 1945.
2. Since WWII, we have had 13 recessions, defined as 2 consecutive quarters of GDP (Gross Domestic Product) decline.
3. We have had 3 recessions in the 21st century: 2001, 2008, & 2020.
4. We have positive returns in the S&P 500 after most recessions.
5. During the last recession in February 2020 to April 2020, which was sparked by pandemic lockdowns, stocks fell 1.4%, but the S&P 500 closed out the year over 16% higher.
6. Diversifying out of a S&P 500 index means your returns will not suffer as much as the static 500 largest U.S. stocks.
7. In 1994, the Fed. Reserve raised rates seven times in 13 months, the economy still avoided a recession and stocks rebounded 34% in 1995.
8. The second year of a presidential cycle often tends to have weaker stock market returns overall, producing the lowest average S&P 500 return of just 4.9%.

We, at Traditions Wealth, will continue to educate you on a balanced look at the facts. We also believe we could have a recession as early as next year in 2023, but are you at risk of losing all your invested assets - NO!

As a Fiduciary, always acting in your best interest, we will bring you more true data in the future. Please contact us with any questions at 979-694-9100 or        
Brien [email protected]
Sarah [email protected]