With several excellent puzzled questions on the recent market movements last week and the final capture on similar questions of two buddies in my steps from the house Starbucks on Saturday early am … a post was in the works…
This post is an add on to our “Anatomy of a Slowdown” which we spoke about here in our Newsletter’s lead article and again here in our late January post …. but again with multiple excellent questions last week, we thought the additional comments timely…
Weird Snap Backs During a Slow Down
While no one knows for sure, but in if it looks like a duck and quacks like a duck it may be a duck form … for some reason snapback rallies of dramatic proportions are common during market attempts to gauge a slowdown.
Using our most recent dramatic slowdown as an example and please remember that was a very short and brief slowdown compared to the afore mentioned Anatomy articles…. the first snapback was 4.87% then the next at 5.87% and finally a 10.13% snapback…. yep over 10% …. see chart below – know it is busy but wanted to get all three big snapbacks measured…
For whatever reason … these occur frequently during slowdown periods and rarely of that magnitude during normal growth times.
These snapback rallies can ignore things like the worst unemployment report ever recorded (chart above) or even as of last week an invasion of a neighboring country…
Lot’s of theories, maybe some are correct, but in duck like fashion it just seems to happen…
Bottom line, using history as an example, the slowing probing and snapback moves are likely not over…
Stay cool, stay calm and ignore the dramatic headlines!
Have a Great “Snapback Analysis” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
April 2022 Financial Planning and Capital Market Review – By John Kvale CFA, CFP
Hello and Welcome to our April 2022 … Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
April 2022 Video
YouTube
Financial Planning Tip(s)
Back to Basics Series – Educational Funding
In our continued fun “Back To Basics” Series here we discuss Educational Funding…
Here is one very important item to remember from the post:
Did you notice we put Retirement Planning BEFORE Education planning? Do you recall in Part 3 in Debt Planning we said one of the few good debts are educational related debts ….We of course are not advocating Student debt/loans… but they are available in abundance and again not a bad debt. There are not retirement planning loans…. just saying!
Proxy Vote Reminder
In this post we remind you to please reach out if you have fallen off the list for us to proxy vote for you!
If you are getting those pesky Proxy Notices (some can be small books- oh the trees that are destroyed- digressing) reach out to us, we not only vote the Proxies for you, but we get one single notice for everyone, and Jen has done an excellent job in getting a great deal of those electronically…. Did we say how Green this is?
Capital Market Comments
The Slowdown is Here
We first started speaking of the slowdown in our Q 1 2022 Newsletter here in our “Anatomy of a Slowdown” main aricle actually released in December of 2021….
And then again, here in our Q 2 2022 Newsletter ….
Then again here, here, here, here, and again here.… among a few other times…
Last week the BEA “Officially Released” a negative GDP print as noted here in our post and in this chart….
Never get the timing exactly, but we are not surprised and have been waiving the flag here in our talks and are prepared!
Have a Great Day, Talk to You at the End of May!
John A. Kvale CFA, CFP
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Posted in Audio, Clients/Clients Only, Economy, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Reminder, Video
Tagged 529, Anatomy of a Slowdown, Back to Basics, College Funding, CPI, Proxy Vote, Slowdown