The Setup:

We continue our conversation with our chief investment officer, Keith Lockwood today. We’ll break down some market predictions for the rest of 2022 and 2023. Should we expect a rebound or a recession?

The Combination and Key Points: 

On today’s episode of Unlocking Your Financial Future, we continue our conversation with our Chief Investment Officer, Keith Lockwood. In the first episode with Keith, we discussed everything that’s going on in today’s world, how it’s impacting the market, and how we position our clients to withstand these market downturns. Today, we’re going to dive in on some predictions on what the rest of 2022 may look like and how you can protect your financial future.

Should we expect the markets to take off or should we prepare for more volatility? What kind of indicators should investors be looking for? We want to look for those capitulation moments: signifiers that retail investors are selling and ‘giving up’ in the market. We’ve seen some of this already in oil and gas stocks. In 2009 we saw capitulation in tandem with the market crash.

History also tells us the first six months of a midterm election are very volatile. Depending on how fast the Feds raise interest rates, we may be looking at a short recession in 2023 especially when looking at consumer demand and supply chain issues. But if we have some good momentum, that may bode well for the markets.

Even with the possibility of a recession, we don’t want to abruptly jump out of the market. If a recession happens, it’s not going to be the same as 2008. Banks and people still have money. If you pull money out now and wait for the market to go down, even more, to buy back in you risk losing a lot. You can’t tell the future and those stock prices might rebound before you know it. Don’t ignore the first rule of investing: buy low and sell high. You’re better off following the buy and hold strategy; getting in at a good price and managing risk as it comes your way.

If you have any questions, please reach out to us at https://www.baschrock-fg.com/ or give us a call at 330-473-1060

To hear more you can listen to the full episode or use the timestamps below to find a specific segment.

0:44 – Do we expect the markets to take off or more volatility?

6:01 – Good momentum can help the market

11:22 – Why should we not jump out of the market?

13:53 – The buy and hold strategy works

Key Quote: 

You’re better off getting in at a good price, which we believe in, and then buying and manage.

-Keith Lockwood

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!

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Withstanding Market Volatility with Keith Lockwood – Part 1

Protecting Yourself Against Fraud 

Frequently Asked Questions about 401(k)s