Keeping Your Portfolio Cool in the Summer Heat
- U.S. stock market fell during the month of May as trade tensions and fears of global growth slowdown took center stage. The bond markets also continue to send warning signals as yields on short term bonds remain above longer-term bonds, a historical predictor of an economic slowdown.
- While it may be tempting to believe that certain economic indicators can predict the next bear market or recession and that if we only followed these indicators closely, it would allow investors to avoid the decline. It’s important to remember that no single indicator or market event should be used to predict the top or bottom in the market.
- Despite the pullback, stocks remain relatively close to all-time highs, making this a great time to ensure your portfolio is fully prepared for the future before you head out on summer holiday.