There has been a tug of war going on in the markets lately. The free traders are worried about a trade war and average people are not too worried. The market is normally pretty flat during the summer months, sometimes called the summer doldrums. If you were to look back historically at how the market does in the summer, then you will find that it is pretty flat and goes through a lot of up and down volatility. This is a textbook example of what is happening this summer. Mostly sideways movement with volatile ups and downs.
Here we are again at the end of another quarter and I expect the next couple of days to be down, then buyers will come into the market on Monday of next week. Money managers do their window dressing near the end of a quarter, because of two reasons. One is that they want to lock in any gains and the other reason is to hide their portfolios from freeloaders who like to copy what they are doing.
I think what we will see is a good second half of the year as far as the economy is concerned and more of a bounce to the upside in the market in the 4th quarter as has been typical historically.
Stay focused, stay invested and you will be rewarded for it later in the year.
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