Should You Worry About the Recent Rollercoaster Market?

It’s safe to say we are in the middle of some volatile times on Wall Street.

U.S. markets have been on a roller coaster ride. Plenty of folks may be looking at their retirement accounts with some trepidation.

In a recent interview with KXL radio’s Cooper Banks and Lucinda Kay, Northwest Financial & Tax Solutions CEO Jeff Dixson acknowledges there is considerable cause for concern, specifically about treasury bond yields.

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“These are things that historically have been indicators that (we’re headed for) a recession, that there’s a slowdown in economic growth. We’re just going to have to see how that plays out. People have just gotten so used to these low interest rates for so long, that as things change, that has a big impact on the bond market as well.”

Banks & Kay note that many economists are signaling that a recession may be just a year or so away. Jeff says don’t panic, but it’s certainly something we should be aware of.

“There are certainly indicators of that; we’ve had this booming economy, the stock market has been on a 10-year recovery, the longest bull market in history,” Jeff comments. “Eventually what goes up may come down, and many people have been predicting that we’re long overdue for another correction in the stock market.”

Jeff Dixson, NWFTS

Jeff continues: “That’s hard to justify when everything is going so well. The economy is booming, unemployment is at the lowest rate in over 50 years. That works against (the belief that) we should be overdue for another bear market. I think until all this world trade stuff, the tariff wars and all of these things settle down, it’s going to be very difficult to predict.”

Jeff says it’s good to be careful in the short term, and also recognize opportunities when they arise.

“The main thing is to understand how you’re invested, how much risk you’re taking, your age, how close to retirement you are – a lot of those things enter in,” cautions Jeff. “There are opportunities. There’s a lot of money being made in these big market swings.”

Dixson wraps up his comments by saying, “The back and forth threats that are going on with the world trade system eventually will settle out. My advice is to keep emotions in check and be patient. This volatility is not over.”

 

Jeff Dixson is the President and CEO of Northwest Financial & Tax Solutions. His show, “The Jeff Dixson Show” can be heard every weekend on KXL-FM, and five other Portland-area radio stations.