Will the bull run continue? Are we headed towards a recession? Does anyone actually have any idea what’s happening?
If you’ve found yourself asking one of these questions (or any other variation of them), you’re not alone. We’re currently in a very interesting time within our nation’s history and many people are struggling to decide what they should do with their hard-earned capital due to the high levels of volatility in the stock market.
We want to help ensure that you protect your nest egg as best you can, so our goal is to help you analyze the stock market from a ‘big-picture’ perspective in a way that you can understand.
The best way to do this is to follow a ‘simple’ two-step process.
- Step 1: Make an educated guess as to whether the stock market will go up or go down in the coming months/years.
- Step 2: Based on your answer to step 1, decide which investment option(s) you should utilize during that time period.
- Step 3: Repeat steps 1 and 2 as the stock market appears to change directions.
That’s it! It’s a really ‘simple’ process to follow, now you just have to figure out how to achieve Step 1.
Where is the Stock Market Headed?
Making an educated guess about which way the market is going to go is a daunting task. However, if you analyze it from a ‘big picture’ perspective, you can simplify it a bit for yourself. In order to do this, there are THREE main pieces of the puzzle that need to be addressed.
- Where are we within the macro market cycle?
- Is the stock market stable from a fundamental point of view (AKA are companies becoming more profitable or are they losing business)?
- How is the trade war ACTUALLY effecting the stock market and the every day consumer?
We have an article addressing each of these things individually. Read through them and you’ll be able to piece together your own view of where the market is headed.