Global Anxiety Creates Equity Markets Anxiety

Feb 23, 2022

Market Updates

I am receiving phone calls and emails on a regular basis from worried clients and prospects that their accounts are down. This slide began back in October, and they aren’t wrong to be concerned.

The Growth Sector, particularly the Technology Sector, has undergone a correction and now looks much more attractive. 

Good and profitable companies are down more than 40% since October.

Some of those share prices have been halved. It’s painful for everyone unless you have cash-on-hand to purchase at these prices because these markets have never stayed down for a long period of time in modern history.

We are in a period of global anxiety.

Let’s look at recent history. 

The Covid-19 Pandemic

Just two years ago when the COVID pandemic hit, markets dropped almost 35% within just a few weeks. The bond markets hiccuped as well leaving investors nowhere to go for gains.

Within only 90 or so days, the markets began to return to normal.

Those that were able to purchase during this period were the best winners. Most investors felt great by the end of 2020.

The Financial Crisis of 2008

In 2008-2009, we hit the great financial crisis with the US Government bailing out some of our largest financial institutions.

There was a major correction in the markets. 

If you had purchased during this period, then you would have loved 2010 – 2020 because you purchased equities at the lows of the markets in 2008.

The Dot-Com Bubble of 2001

In 2001 – 2002, we had the technology sector blow up and many of the early players in this sector ceased to exist. The better or luckier companies made money for their shareholders and began to thrive shortly thereafter.

You can see the pattern here.

Geo-political conflicts on the rise

Today we have Russia on the brink of war. War always upset the markets. Washington politics is often in disarray, leaving us quite polarized because of it. Oil and gas prices have skyrocketed as we gave up our energy independence. We are now more dependent on foreign oil than just two years ago.

Furthermore, we are finally reopening nationally from COVID restrictions as California just removed the mask mandate, but employers in many industries still need to wear masks when dealing with the public. My gym workers still need to wear masks while we work out with them.

Outside of this global instability, our economy is also now opening with people spending more money today than just a year ago.

This means more profits and more opportunitiesSo, hang in there! 

As Europe eventually settles down — and let’s hope this doesn’t turn into something even bigger — the US Markets should rise accordingly.

Of course, should you have any questions, please reach out to me at 925-314-8503 or [email protected]

All my best,

Elliot

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This is an important time to review your portfolio. 

If you have any questions or know someone who could use my services, I’m only a phone call or email away.

Get in touch to start the conversation today.

All my best,

Elliot Kallen

(925) 314-8503

[email protected]

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DISCLAIMER: Prosperity Financial Group and Meet the Expert® with Elliot Kallen do not make specific investment recommendations on Meet the Expert® with Elliot Kallen or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of the Meet the Expert® with Elliot Kallen guests, and not necessarily of Elliot Kallen or Prosperity Financial Group.

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