Annuities Vs. The 2024 Stock Market
It’s only fitting that I follow up on last week’s interest rate update with some solid market analysis. Interest rates affect the overall economy in various ways but that’s only part of the story when it comes to managing retirement assets. I’m a firm believer in having adequate parts of both growth and safety in a portfolio. There are plenty of people on the investment side of this business who feel the same way.
It has been a while but I got John back this week to interpret some of the movements he has been seeing in the stock market. Asset levels have pulled back in the past couple of weeks along with a rarely coordinated rise in interest rates. It’s a phenomenon that shows up once in a while to create a double whammy for traditional retirement portfolios. It is usually short-lived but this occurrence has been consistent for the past year or so. Hopefully things stabilize and return to normal soon.
So far this year, the market seems to speculate on every decision the Fed has made. Early this year it was widely expected that several rate cuts would happen so the market charged forward in anticipation. With inflation staying hot Gerome Powell has signaled that rate cuts will be delayed until that is under control. It speaks to the same message I shared last week. Be patient and everything will be fine. One of my favorite lines from this week’s podcast is when John said, “if you can’t sleep at night, then your portfolio is not positioned correctly.”
At first glance, it may appear that there is more market decline in the near-term but in the same sense there’s a case for it looking good in the long-term. This isn’t meant to scare anyone and it’s important to keep an eye on things so you don’t get stuck in the wrong spot. Cash is a good asset to hold and will buy you some time That fits right in with what I said last week. Great deals will continue exist for long-term protection and you have time to figure it out if you don’t trust where the market is going.
This is a timely video for everyone who follows this production so check it out and leave a comment to let me know your thoughts.
Enjoy your weekend!
Podcast Episode: Annuities Vs. Stock Market in 2024
Further Readings:
All You Need to Know to Buy an Annuity
Are Fixed Indexed Annuities a Good Investment?
Last Updated on August 30, 2024 by Bryan Anderson
