The Whack-a-Mole Market

The Whack-a-Mole Market
May 1, 2023

The Current Market Grind

As I had forecast when I wrote to our clients in early February, we gave back some of the quick gains we saw in January. And over the past few weeks, trading transitioned to almost a zero-sum game with stocks and bonds grinding up and down within a tight range.
So far this month, we’re seeing that first quarter earnings reports aren’t as bad as analysts had forecast.  But with debt ceiling fears looming and the economy continuing to show signs of deceleration, the markets likely won’t see a sustained rally until late in the year when all of the bad news has been baked in.

Although I’m not expecting another steep sell-off anytime soon, we may drift lower again if the Federal Reserve spooks markets on May 3rd when Chair Powell holds his next press conference.

Regarding the debt ceiling talks, I don’t think that either party wants to risk another shutdown like we witnessed in 2011, because they would risk losing votes in the 2024 Presidential election. However, it’s anyone’s guess as to what the results of the talks will be. Hopefully, there will be no government shutdown this time, and the talks will be settled amicably.

Welcome to Whack-a-Mole

We’re in what I would call a “whack a mole” market now – a stock goes up one day, just to drop back down the next day, while a new one pops up, and so on. Now’s not the time to panic, but it’s also not the time to dive into the shallow end of the pool and take on too much risk.

Want to talk about it?

Reach out today.

Crystal McMahon CERTIFIED FINANCIAL PLANNER™ / CEO 4424 6th Ave, Tacoma WA 98406| 253-858-2427 Ext 2 | greatlifeinvesting.com Financial Planning, Tax and Investment Advisory services provided by Great Life Investing LLC, a Washington Registered Investment Advisor.