The Prudent Retiree - May 13, 2021

We don’t know yet whether Chicken Little is right. The market has fallen significantly in the past two days, but that does not mean an all-out crash is imminent.

Prudent Retiree has been telling you we are concerned about a resurgence in inflation. There was an expectation that we would see a pickup due to the reopening of the economy. Last month’s numbers were higher than consensus estimates and the market responded accordingly. The Fed says the uptick will be transitory. For now, we give them the benefit of the doubt.

Prudent Retiree has also warned that a volatility correction could occur anytime. It’s here. We’ve also pointed out that corrections are now fast and furious. Computer and online trading drive the velocity.

Prudent Retiree listens to the market. Right now, market metrics remain positive so we expect this movement to be a short-term correction. We think it best to maintain your current equity positions.

Prudent Retiree knows that market metrics can and will change. All crashes start with corrections. We are monitoring risk and market action. If the market says change, we will. The market, not Chicken Little, will tell us what is next.

Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement. 

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Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 – www.horsemangroup.com

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.

A market index is unmanaged and may not be invested directly.