Stock Market’s Mixed Bag

The market volatility is increasing as of late as we’ve seen a mixed bag of economic data. Looks like we’re in for another volatile summer. Liz Ann Sonders, Schwab’s Chief Investment Guru, thinks the same. In her latest piece (Click HERE  ) she makes a case for the market moving higher, yet at a more tepid pace.

Market fireworks have increased as we’ve seen some triple-digit Dow moves, both up and down, but what does the future hold? We remain relatively optimistic on the stock market going forward, although as the economic recovery matures the gains could be more of a grind.

Sonders’ key points:

• Earnings season is largely positive & CEO confidence is high – exceeding expectations, boosting guidance, and raising dividends
• Housing remains moribund but the market seems to be largely dismissive. 
• A ratings warning on US debt rattled the stock market but bond markets were relatively unmoved. Issues certainly need to be addressed, but they are more likely to affect money flowing into the economy and highly unlikely to result in failure to pay obligations.
• Meanwhile, the Fed is striving to communicate more effectively—but what are they communicating?
• Japan's problems in the aftermath of the natural disaster seem to be expanding,
• Europe is trying to hold together its coalition.
• Meanwhile, China is trying to engineer slower, but still solid growth
• We believe this points toward a continued improving labor outlook but could mean more grinding in the stock market.

What does this mean for your investments? If you’d like to know if you’re investments are on track, click HERE for a FREE Financial Roadmap!