Although there are signs of economic weakness, the main trends remain positive. And while a recession will certainly occur at some point, the data suggests it won’t be soon. That alone should cushion any further volatility.
Will We See More Turbulence?
It is very likely that we are in for more turbulence. Should we worry? Not yet. Despite the headlines and the concern, the market is still within 6 percent of its all-time high, and only back to levels of a couple of months ago. As pullbacks go, this remains a mild one. Although we should keep an eye on both the market and the economy—and there are indeed signs of risk—the trend remains positive.
Brad McMillan is the chief investment officer at Commonwealth Financial Network.