Yellow Lights are Flashing: Should I Buy, Hold, or Sell?

We have experienced the most interesting of years. 

The first six months of 2021 saw large increases in the Energy Sector and Banking Sector, followed by a flattening and slight decrease. During this period, the growth companies of America basically saw a decrease in their major Sectors as well, only to be followed by terrific increases in these Technology and Science Sectors since July, through last week.  

The darling company of Silicon Valley with the most loyal fan base globally, Apple, is under scrutiny in a new NY Times piece that revealed that more than 500 current and former employees have come forward and submitted, in writing, accounts of verbal abuse, sexual harassment, retaliation, and discrimination, which could lead to billions of dollars in settlements and encourage employees of other large companies in Silicon Valley to file claims as well.

Now let’s see if you are confused by the news coming out of Washington, D.C. politics. 

President Biden strongly suggested this week that he is looking for national vaccine mandates, adding fuel to the debate between where public health and individual rights begin and end. And we are all aware of the awfully orchestrated withdrawal of our troops, with Americans and Afghan loyalists being left behind in Afghanistan. 

The news pictures from the southern border in Texas show tens of thousands of undocumented families sheltering near a bridge and more than 1,000,000 undocumented immigrants have entered our country illegally since January, some released quickly through the US and others deported.

In New York City, Boston, Wisconsin, and now parts of California, one cannot eat indoors at a restaurant without proof of both doses of the Moderna or Pfizer vaccinations or the single dose from J & J. Heck, beginning next week, I cannot go to my gym without my vaccination card and masks are mandated everywhere, irrespective of vaccine participation.  

And, just in case you took your eyes off the China ball, they now have the largest Navy in the world and building, what will be, the largest nuclear stockpile in the world, all while watching us and wondering if we have the backbone and fortitude to take them on in Taiwan or anywhere else.

Surely, you are wondering if all this negative news will affect your accounts. 

Is this the time to take profits and sell out of gains? 

Is this the time to just hunker down and let all the negative headlines pass and expect larger gains in the future? 

Is this the time to buy more?

These are all good questions. 

There are a few flashing yellow lights that we’re keeping our eyes on every day:

• Higher taxes will slow us down. 
• Runaway inflation will slow us down. 
• Out-of-control federal spending could slow us down. 
• Global aggression will slow us down. 
• And another possible closure of economy again will definitely slow us down.

Here at Prosperity Financial Group, we believe that significantly great volatility is in front of us. We believe that this is definitely not the time to sell, but to buy with the dips in the markets. There will be 5% to 15% dips and increases for the next six months, and these represent opportunities. 

And we believe that, unless another Covid variant shuts the world down again — which is still affecting major areas of the economy such as the Leisure Sector — the global markets will continue to expand through early 2022 and profits will follow, which could drive up equity prices for those company capitalizing on the expansion.  

So, we continue to be cautious buyers, not sellers, for the remainder of this year, still buying the Growth Sectors and expanding into more Global Markets.

Call or email me anytime.

All my best,

Elliot Kallen

925-314-8503

elliot@prosperityfg.com