The Emerging Markets As An Impressionist Painting describes investing in emerging markets as investments that are experiencing growth relative to policy easing in China, modest inflation in the world’s economies, and a Federal Reserve that seems to be holding off raising interest rates. Emerging market investments are a great place to look for bargains during economic uncertainty.
The Dividend Guy Blog published an article outlining how the current consumer debt levels are extremely high, pension plans are underfunded, and how most stocks on the market are overvalued. The dividend guy blog also mentioned how he would consider going 50% cash if the markets continue to ignore signs of an economic slowdown. Holding cash during times of recession is great, because you can always look for more opportunities to buy!
The Chicago Financial Planner discusses how the market’s longest bull market looks to be coming to a head. The threat of tariffs, terrorism, and potential actions by Federal Reserve could all aid in the downfall of markets. The “Planners” advice is to control factors that you can control, re-balance your portfolio, review your financial plan, and to not “over-do” it when investing in company stock.
The Root Cause of Volatility depicts a chart forecasting the S&P 500’s returns versus high beta stocks and low volatility stocks. While technical trading patters are extremely important, especially in this blog, Phil Huber is quoted as saying, “Instead of trying to pinpoint the root cause of volatility or downturns, we’d better served looking in the mirror every once and a while. There are to many variables beyond our control for us to ascertain the true causation of market events.” I love this point because often smaller, retail investors get caught up in small events instead of focusing on the big picture in the markets. Sometimes we need to step back and breath.
As investors it is important to remember to keep an eye out for downturns or downward trend in the market. Volatility in the market place can present major opportunities to buy if you time the market right. Looking at emerging markets can give us many opportunities to find inexpensive stocks in thriving industries. Stepping back and breathing is a concept that is not talked about enough in investing. It is important to make and not lose money, but in reality, no one is perfect. Invest wisely and watch the markets, the future is unknown. Also, holding cash is a great investment concept in times of financial distress!