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A Promising Start to July and Q3 of 2023

A Promising Start to July and Q3 of 2023

July 18, 2023

The stock market continued its drive upwards as positive inflation reports and above-expectation bank earnings bolstered the market. These were some important hurdles to clear early in the month, while the release of a slew of corporate earnings and the Fed meeting are anticipated in the coming weeks.

The market has rallied very nicely over the last several weeks, maybe a little too much and a little too quickly. It wouldn’t be surprising if 2nd quarter corporate earnings or the upcoming Fed meeting become catalysts for a short-term market pullback. A typical pullback is a 5-10% market downturn; a short interruption to the overall upward trend which is quickly followed by a strong rally and continuation of the upward trend. This type of stock movement is centered more on investor sentiment than on economic fundamentals, which is why they are often of short duration. A pullback of this nature will most likely occur before the stock market gets back to its previous all-time highs.

I believe any type of pullback is an opportunity to invest excess cash and help build your portfolio while stock prices are relatively lower. I take advantage of these opportunities to rebalance your portfolio (as needed) by investing excess cash from dividends and contributions, and to maintain the proper percentage allocation for each investment based on your personal Investment Strategy.

Photograph by: Cristian Escobar on Unsplash´╗┐

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