It was a weak week in the world’s
financial markets and these headlines from The
Wall Street Journal, Saturday, June 2, and Sunday, June 3 editions, leave
no doubt of that.
- Grim Job Report Sinks Markets
- Euro-Zone Reports Deepen Gloom
- Asia Weakness Heightens Fears of
- Brazil Loses Steam as World Slows
- Dow Tumbles Into Red for the Year
- Raw Materials in a Free Fall
- Government-Bond Yields Sink to
But, let’s keep something in mind. Headlines
like these are designed to do one thing – get you to keep reading. By doing so,
the publisher can sell more papers and charge higher rates for advertising.
Unfortunately, there’s an unintended
consequence to this type of hyped headline. It has the potential to scare the
public into doing the wrong thing at the wrong time for the wrong reason.
The fact is, scary things happen every day, however, that should not derail a well-thought out plan that has checks and balances in place to try and distinguish between short-term noise and long-term secular change.
Our job as a financial advisor is to dig beneath the screaming headlines and get to the crux of what’s happening. With a clearer understanding of the real issues, we can do a better job of discerning how changes in the economy impact the markets, and, ultimately, your goals and objectives. And, with that information in hand, we can make course corrections as needed to help keep you on track.
The rest of the report can be found at: June 4th 2012 Commentary
Please be sure to visit the Parks Wealth Management website