The market is currently going through a short-term sell-off, and the yield curve has inverted by 100 basis points. An inverted yield curve has negative implications for both the economy and the future of the stock market. To learn more about the effects of an inverted yield curve, further reading is recommended. The focus will be on London due to the Bank of England’s plan to raise rates for the 13th time, with particular interest in predicting future rate hikes. Presently, the market is indicating a global slowdown.
As the market tries to determine its next direction, increased volatility can be expected. It is well-established that long-term investing tends to be successful. In light of this, the Fiscal Investor suggests paying down debt and avoiding investing fads. It is advisable to seek value in investments, preferably in stocks that offer dividends. Holding onto stocks that provide regular income while waiting for more positive certainty can be a prudent strategy.
Stay tuned for more updates tomorrow, and remain focused on being a Fiscal Investor.