Curious about what's happening in the stock market? Every month, the alooola® team summarizes the key takeaways in a quick, easy-to-understand article!
What Do I Need to Know?
Market
•Less than 1% of the stocks in the S&P 500 finished higher during mid-September, something that has happened only 28 other times since 1940.
•On average the index gained 15.6% over the following 12 months after such an occurrence and was higher 79% of the time.
•So far this year the S&P 500 is down over 20%, on track for its biggest annual decline since 2008.
•History shows that this type of drop is not unprecedented.
•Over the 50 years from 1970-2019, there were 7 recessions, 10 bear markets, and 4 legitimate market crashes with losses of over 30% for the U.S. stock market.
Tricks Have No Treats!
•Many tricks that have typically worked out well for investors during market declines have produced less than desirable results this year.
•Investors who have sold out of the market out of fear have potentially missed out on some of the best single-day performances so far this year.
•This is impactful because if an investor had missed the five best single-day gains from this year, the S&P 500’s loss widens from around 20% to 30%.
Cocktail Party Facts
•Last week’s average rate on a 30-year fixed mortgage was 6.29%, the highest such rate since 2008.
•So, what would it mean if mortgage rates were to hit 7%?
•At 7%, financing the purchase of a $400,000 home would cost about $760 more a month than it did at the end of 2021 (when the 30 year mortgage rate was 2.98%).
Financial Wellbeing
Emergency Fund
•Unexpected life events can set you back financially.
•As a result, it's important to establish an emergency fund to cover unplanned expenses such as car repairs, unemployment, or medical expenses.
•It is recommended that your emergency fund be equal to 3X to 6X your total monthly expenses.
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Disclosure: alooola® is a branded investment advisory service provided by Glen Eagle Advisors, LLC, an SEC Registered Investment Adviser. The Glen Eagle Advisors brochure provides an explanation of the service and its fee structure. Material presented is for informational purposes only, and is not meant to be advice to any individual. Talk with alooola® to see how this information may apply to you. Consider your current financial situation, tolerance for risk, and investment objectives before you invest funds in securities through alooola®. For a more complete explanation of the alooola® service, please visit www.alooola.com. This email includes factual data based on articles published by Reuters, Wall Street Journal, Barrons Magazine, Apollo Chief Economist Research, BofA Global Research, MFS Research "By the Numbers", and Bloomberg.
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