In this episode of the WWM Podcast, we dive into the latest movements in indexes, CDs, and bonds, and explain what they could mean for your portfolio. We explore the rising influence of negative media narratives and why smart investors should avoid making knee-jerk decisions based on headlines. With potential Federal Reserve rate cuts on the horizon, we discuss proactive financial strategies—like reviewing your estate plan, updating your will, adjusting your budget, and reassessing your tax withholdings—to help keep your long-term plan on track. Our advisers also unpack Senator Rand Paul’s recent warnings about the growing national debt and explore how fiscal policy and market shifts could shape the future of wealth preservation. If you’re looking to stay informed and strategic in a rapidly changing environment, this episode is packed with the insight you need.
If you want to understand what’s going on in the economy, get better insight into the financial markets, and separate the sound from the noise so you can make good financial decisions, tune in now!
WWM Financial is an SEC Registered Investment Advisor
The opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry and how we may be able to assist. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. As always please remember investing involves risk and possible loss of principal capital. Tax considerations presented may not be appropriate every individual circumstance. A tax professional should be consulted before making any decisions about your tax liability. wwmfinancial.com | 760.692.5190
Wondering why the Stock Market is so volatile? How stable the US Economy is and how potential conflict has influenced the stock market historically? Tune in to listen to Steve Wolff, Managing Partner at WWM Financial, give his perspective on what has occurred and how history can provide us a little insight.
FREE Report: 5 Investing Secrets Every Investor Needs to Know
WWM Financial is an SEC- Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WWM Financial and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by WWM Financial unless a client service agreement is in place.
What is happening with Russia, the stock market, and inflation? Is the stock market and economy still intact?
In this month’s Stock Market Update, Steve Wolff discusses what has occurred in January relating to the stock market, inflation, raising interest rates by the federal reserve, supply chain issues and much more.
FREE Report: 5 Investing Secrets Every Investor Needs to Know
Avoid making bad investment decisions, this little-known report reveals 5 better ways to invest in stocks.
Learn 5 simple steps to avoid making bad investment decisions.
DISCLAIMER:
WWM Financial is an SEC- Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WWM Financial and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by WWM Financial unless a client service agreement is in place.
Bitcoin myth debunked in just 2 minutes. Take a peek at this quick video that helps you understand why Bitcoin is misunderstood. Understand the facts about cryptocurrency.
Steve Wolff, Catherine Magaña and Parker Waldron dive deep into the hype behind cryptocurrency and how it came to be such a hot topic.
FREE Report: 5 Investing Secrets Every Investor Needs to Know Avoid making bad investment decisions, this little-known report reveals 5 better ways to invest in stocks.
WWM Financial is an SEC- Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WWM Financial and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by WWM Financial unless a client service agreement is in place.
Now for the understatement of the day…volatility has returned to the stock market.
Why has the stock market gone down with such force in the last week? I think there are a few reasons.
Profit taking. Stocks had run up extremely quickly over the last year or so, especially in January when the indices were up by around 8%. So it is normal for profit taking to occur.
Rising interest rates. Some investors have been spooked by the rise in interest rates. The 10-year government bond has risen to around 2.9%. They also believe the Federal Reserve is going to raise rates 3 or 4 times this year. When interest rate on bonds get high enough, they are competition for money that is now in the stock market. So the people who worry about this decided to sell some of their stocks.
Forced Selling. Perhaps the main reason for the stock market dive has been caused by hedge funds and others who invested in something called the VelocityShares Daily Inverse VIX Short Term Exchange Traded Note (and other securities like it). It is a security that bets on the volatility of the stock market. This is a highly leveraged security that is great when there is no volatility in the market.
Unfortunately, the spike in volatility in the market has caused some of these Exchange Traded Notes (ETNs) to nosedive by as much as 80%. Because they are leveraged, the hedge funds and other investors were losing a fortune and had to cover their margin calls. How do they raise money to cover the margin? They sell stocks that they own. This is what’s known as forced selling and it is happening in spades.
Are We in A Bear Market?
Does this indicate the start of a bear market? I don’t think so because the earnings that companies just reported were pretty good. Nothing has changed with the economy in the last week, just the price of stocks.
We might be in for a few more days of this until the forced selling abates. I do not believe this is the time to do any wholesale selling because the economy is still good. The tax cuts haven’t even started to kick in yet.
The advice from us is to sit tight, stay calm and if you have the cash be ready to gobble up some good stocks that continue to be forced lower.
As always, we are here for you, so if you have any questions, do not be afraid to contact us.
You can reach us at 760-692-5190 or Steve@WWMFinancial.com
