Pullbacks Are Ok

Coming off the back of last week in the market I saw some overreaction to the week of trading. In this episode, we just jump in to quickly say that it is ok to have that and why. 

Thanks for listening! 

Transcript

Eddie Thomas: 0:00

Hey, what's going on everybody? It's another episode of the modern outlook. hope everybody's doing well hope you guys had a good week. I'm filming this late Friday, and the day here on June 23. And normally, I don't actually say the date on these, just because I like to, I like to keep the content going over the next couple of weeks my of like a bulk of filming or recording. But this one, I'm going to put it on that as the June 23, just after force and the market just closed. And I'm definitely going to release this one next week. So that's why I'm putting the date on it. So if you're listening this Monday of next week, hope you guys had a good weekend. What do I want to talk about today? I'm gonna talk about the market, strictly straightforward, strengthen a market. And the reason I want to talk about that really briefly, it's gonna be a quick episode is because for the first time, and it felt like a long time the market actually pulled back. And is it a long time now? It's just the first time that you know, since the markets had this nice little run that we've been on, that some news came out during the week, people reacted to it and had a little bit of a pullback this week. I mean, NASDAQ snap, like an eight week winning streak or something along those lines. Which, if you rewind the clock nine weeks ago, and you said hey, the NASDAQ's and go on an eight week, eight week winning streak you okay with that? Everyone would say yes. But now it happens and everyone panics. So when you come off the last eight weeks, I always had it come off last week, the week before you have good winning winning weeks in the market, you're going into a week like this. And a lot of news has come out in the past week or so the feds come out and said hey, we're done raising rates for now we're pausing. But we we probably will in the future, another pot on that common we'll see what happens in the future with that. However, anytime you have a pullback of a week, like we did, again, not even drastic, just a minor pullback. And you have that little bit of downward momentum that people saw this week, you always have people coming out saying okay, well, this is the end of the bull market. And this is the end of the good run, we've had prepare for the worst. And I want to come on here and say, that's just not true. Now again, can we go further down? Yes, nobody knows what the market is going to do next week. Nobody knows what it's going to do a month from now. Nobody knows what it's going to do six months from now. And there is data that needs to come out. That's important. That's undeniable. However, having one bad week does not eat me, the party's over, by any means. And you're gonna see over this week and next week, and see people come out and say, Well, the reason it's going down is because the bull markets done, and we're gonna go into recession, and this is the beginning of it. And I told you guys and hear all the signs and this that the other. And none of that's true. In reality, what happened this week, is the markets calmed down, they didn't go down that much. They just calmed down, we had news come out with the Fed that we weren't expecting them to say, hey, we're gonna potentially or probably raise going on later in the year, you have to take them for your word for their word. And therefore, investors react to that, and you pull back a little bit. In reality, the market was just evening itself out. Anytime you have movements either way, when you have eight weeks when you're up straight. Or if we had an eight week period when you were down straight, that evens out and other differences. And when you really dig into it, you see it this happens all the time. When you have a down couple when you have a down week or down two weeks, and then you have a bounce back. People always say well, that bounce back can't continue, just like we are now 2022 sucked. And since October, we've been on a good run, especially in 2023 now, and everyone's pointing to the reasons why this run can't last. Meanwhile, when 2022 sucked and we had a bounce back, and then sucked again. Nobody was ever saying hey, this is why it's not gonna suck. Everyone wants to get tied to the negative everyone gets tied to the reason why things are gonna be bad. Good. It's easier to say that it gets more clicks, it gets more headlines people listen more. No one likes to listen to the person and say, hey, everything's gonna be okay. And I'm that person. Everything's gonna be okay. If next weeks now, everything's gonna be okay. If next month then everything's going to be okay. Because where we're at right now is a big inflection point. We just came off in a thin knot. We're currently in the middle of a phenomenal run since October. We're in a bull market. The s&p is in a bull market. Nobody would have seen that got solid coming back in October 2022. Nobody. So when the middle of a good run. We had one week when news came out in the market was down. That doesn't give that that doesn't give back the run we've had. It doesn't point anything in the future. All it means is that on the shortened trading week that we had from Tuesday to Friday, the market went down a little bit. Next week or the week you're listening to this we will see what happens. Next week. We will see what happens the week after we will see what happens. But this was just a stable lysing wait for the market. No, it doesn't mean anything more than that. You're gonna see headlines that it does you're gonna see people say that it does, but it doesn't want a really good run the economy things are looking really good data is looking really good just remember that piece of it. And this won't be the only time you hear from me this week. So I just wanted to come on here quickly though. And go against the grain as the the articles I'm seeing online because honestly, I saw so many I just had to turn the mic on and start recording for a couple minutes here. Like I said, wasn't gonna be a long one though. So until the next one again later this week. Stay happy, stay healthy, and I'll see you. Securities offered through securities America Inc. Member FINRA slash SIPC. advisory services offered through securities America advisors Inc. Wealth Management Services and securities America are separate entities. The opinions and forecasts expressed are those of the author and may not actually come to pass. This information is subject to change at anytime based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.