Similar to September and November of last year, secular growth stock market leaders are working their way through another HEALTHY and temporary correction in the price of their assets. The good news is that while prices have moved lower, the fundamentals have continued to improve, which creates an upside gap that we expect to be filled for investors that are patient and opportunistic.
While stock market corrections are normal, healthy and create sustainable long-term bull runs, they are also very painful to stomach. Whether you’re an existing client with above-average returns or you’re a new investor who has yet to realize growth, it’s never fun to see your account values go down. The good news is that stock price corrections end as fast as they begin and provide the fertilizer for future growth that is sustainable and creates long-term upside for existing and new clients over the next 6-12 months.
In this week’s stock market update, we are going to review the prime culprits of the stock market turmoil that investors have experienced over the last two weeks, how to separate the noise from substance, and prudent next steps we are considering as part of a long term growth strategy for clients. We will also review the difference between price action and value and how investors can use this information to use stock market corrections to their long-term advantage.
Robert Reaburn: Executive Vice President and Head of Wealth Management at LifePro Asset Management.