Did you ever read Sherlock Holmes? In the 1894 story entitled “The Adventure of Silver Blaze” Holmes noticed something odd when he was attempting to solve the mystery.

Holmes said, “the curious incident of the dog in the night-time” and the detail that the dog did not bark or make a commotion during the commission of the crime. Holmes concluded that the suspect must be someone the dog knew because the dog didn’t stir. If someone is breaking into a house and a dog resides there, you’d expect the dog to bark and growl.

The decline in the market this year has been analogized in some ways. Often, when the market experiences a downturn, there  are lots of sudden uproar about the hit people are feeling. Just think back to the year 2020 when the pandemic started in the spring. On several trading days the market triggers paused trading because the market was selling off so quickly.

This year is different in the sense that we are familiar with who’s causing the market decline. You may have already figured out where I’m going. The government is leading us into a recession, but we’re not seeing the uproar that often coincides with market downturn. And I think it may be because we’re familiar with the culprit.

While the economy has slowed as evidenced by us technically being in a recession, it has not slowed enough to cool inflation. This means the pressure is on the Federal Reserve to do more, but they are limited in their ability to have an impact.

What this means for people in the market: First, we should not have money in the market we will need in the next ten years. However, we need our money productively allocated to maintain our lifestyle in retirement. You have options for your income money in retirement.

Second, if our market volatility is causing you turmoil consider using a hedge called a buffered ETF. This has resonated with some of our clients this year. You can be buffered against the first 15% of losses in the S&P 500. In exchange for the buffer, we are capped at earning around 15% of what the S&P 500 produces over the next twelve months.

This allows you to not have to attempt to time the market (nobody can), but allows some peace of mind that if the market drops further, you have a buffer in place. If you’d like to learn more about this strategy or others, please call our office at 864.641.7955.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.