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Is it Time?

Investing Cash Flow Planning

The hardest investing is always found at the extremes!

At all-time highs, investing can feel like one step away from falling off a cliff.

At market bottoms, investing can feel like walking on thinning ice.

Investing on either end is uncomfortable, uncertain and stressful … yet absolutely necessary.

Moving forward is the only way to reach goals, and stopping is not an option until we’ve arrived!  

So here we are … standing on thin ice … looking for the right next steps.

What we’re seeing

The last two weeks brought a lot of new information for us to digest.

Consumer Price Index (CPI)

  • Month over month change was 0%
  • Year over year change was 8.5% (down from 9.1%)  

Employment Report

  • Economists were expecting payroll growth of +250k 
  • Actual non farm payroll report clocked in at +528k

Market Indicators

  • 75% of companies beat Q2 revenue estimates
  • 90% of S&P 500 stocks trading above their 50-day moving average
  • 60% of S&P 500 stocks trading in a positive trend (most since April)
  • Relative strength wise, US Equities moved into the second position behind Commodities

As a result, S&P 500 posted fast gains, Nasdaq Composite exited the bear market, and the Dow Jones Industrial is out of correction territory. 

Where do we go from here?

Does this mean we can march confidently into the next growth cycle?

It’s too soon to tell for certain. A lot can still change. 

But as of this writing we see enough positive indicators to begin our reinvestment of cash. 

What should you do? 

That depends on personal factors I don't have. 

But if you own good investments, stick to your plan. 

And if you're sitting on cash, waiting for the "green light" ...

I encourage you to think about three questions before making any big decisions:

  1. What’s your timeframe - when will you need to use this money?
  2. What’s your risk level - how much can you stomach without losing sleep?
  3. What’s your attitude -  would you rather take a shot knowing you may miss, or save your shot for a more certain time knowing you may miss a bigger opportunity?

This is not meant to be investment advice. You should speak to your investment advisor before making changes to your portfolio.

But I hope this gives you some "food for thought" as we all strive to make good decisions in difficult times.

Thanks for reading,