Just a quick note to offer some perspective on the (many) headlines floating around. There are plenty of things to be worried about right now, so I'd like to pause for a second to remember the abundance in our lives. Especially when so many folks are suffering. When the world stresses me out, I remind myself to be grateful for what I have. I'm grateful for my family and friends. I'm grateful for my health. I'm grateful to have a roof over my head and food on the table. I'm grateful to have work that gives me purpose. What are you grateful for right now? Let me know Let's dive into what's going on with markets. Are markets headed for another major correction? They might be. We've seen three straight months of losses, and markets are being driven by fear and volatility. However, let's remember that markets see major drops just about every year. The chart below shows annual market pullbacks since 2000. |
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We can see that 10%+ corrections have happened in 15 of the last 23 years, even in years where the overall market was positive.1 What's driving investor psychology right now? It's another situation where good news gets viewed as bad by traders. Recent data shows that the economy seems to be doing well. Consumer confidence remained high in October, showing Americans are feeling pretty upbeat.2 Paychecks rose more than expected in Q3, which is great news for American workers, but suggests inflation remains persistent. The first estimate of Q3 GDP showed that the economy grew even faster than expected, growing 4.9% at an annualized rate.3 Bottom line, while the economy is still strong, investors are feeling jittery. It's hard to know which way sentiment will turn, but we're watching and analyzing and will be in touch with more updates as needed. What's going well in your world right now? (I'd love to hear about it and celebrate with you.) What's worrying you? (So I can share the burden with you.) We are living in challenging and uncertain times and I'd like to stay connected to what's going on in your life.
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