Stock Market Poised for Potential Second Downfall

Strategic Wealth

As the Fed has continued to help prop up the market and the United States economy attempts to reopen, coronavirus cases continue spiking to new heights in the United States.  Americans are barred from traveling to most foreign countries and retailers continue to announce large layoffs and bankruptcy filings. As states continue to announce closures or delays on re-opening the stock market may be headed for another significant downturn. Mike Reeves, independent financial planning advisor of Strategic Wealth Designers says there are indicators pointing to another drop ahead.

              “Right now, most states are flat-lining or moving backwords in their economic recovery. They are trying to open but the cases loads of COVID-19 continue to rise,” Reeves says. “The death rate is actually declining which is wonderful but that’s not what everyone is paying attention to.  Governments are closing back up businesses, implementing lockdowns in some areas and delaying in-person schooling for children. The market needs certainty and right now it doesn’t exist.”

              Many investors have sat on the sidelines watching as their financial portfolios dropped steeply, many by hundred’s of thousand’s of dollars only to see the largest 50 day climb in the history of the stock market.  Reeves cautions sitting by idle again likely won’t afford you another bounce back so quickly.  “When we saw the huge drop and then the big climb back out, the market priced in a recovery that would be quick,” he says. “What we are seeing is this isn’t going to be a quick recovery, the Wall Street Journal recently stated the economic recovery is likely to take 10 years to get back to pre-COVID levels. We aren’t looking at a bounce back we are looking at an entire landscape shift.”

              With over 50 million people filing for unemployment since the pandemic, there is a long road ahead to recover that many jobs. Many of those are erased forever as employers quickly realized whose roles were significant and whose positions weren’t providing much value to the company. Reeves says no matter where your financial portfolio is situated right now, it is important to seek a professional opinion from a financial advisor to help mitigate the risk your investment portfolio holds right now. “For many a big loss at this stage of life is much more impactful than a big gain. If you are in or near retirement, now is the time to lock in some safety for your financial investments so when a downturn does come, you don’t feel the big drop in your savings,” Reeves says.

              Learn more by visiting  https://Fox59.com/news/strategic-wealth or if you have a question about your financial plan for Mike, send an email to Info@SWDGroup.com

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