From where I stand, it looks an awful lot like we’re headed for the brink. We’re standing on the edge of a cliff and peering over.
And we could be just days away from the final straw breaking and sending that mutual fund you’re invested in straight off the cliff.
This is what you need to be keeping your eye on…
Well, we’ve seen the stock market take quite a few punches over the last several months, and the last one knocked Wall Street down to the mat. Now we could be just a matter of days away from some news that could have us firmly headed towards a strong bear market.
The nonfarm payroll report was just recently released by the government. In it, the major notes were that the United States added 173,000 new jobs and saw unemployment fall to 5.1% in the month of August.
That sounds pretty good, right.
Well, not if you know that the consensus was for 220,000 new jobs to be created. Ouch.
And that’s perfectly paralleled to the huge stock market we experienced in August. Sounds like a bit more than just a healthy pullback (as many of the so-called ‘experts’ have been saying), doesn’t it?
The issue at hand now is the Federal Reserve and its potential plans for hiking rates…
The general consensus right after the market fell was that the Fed would likely postpone rate hikes, which (in theory) should stimulate more spending and allow the market to recover.
The problem with that idea is that this recent jobs report could be just strong enough to make the Fed keep their previous stance of raising rates starting in September.
As you know, investors are incredibly sensitive as a whole, and a rate hike could send the public running for the hills. If that happens, the majority of mutual funds will be tied to the market and a brick as they’re all thrown into a lake, destined to sink.
And either way, the stock market is looking incredibly sick anyway.
So if you think you felt like you and your mutual fund got punched in the gut in August, get ready for much more in the near future.
This is just one of many reasons why I hate mutual funds, and recommend building your own portfolio. Instead of paying someone else to handle your money and lose some or barely make any (and watching them stay in in positions that are falling with the market), I’d much rather take control of my own money and use the trading techniques of Wall Street informer to beat the Wall Street pros.
