Looks like the bear is returning to the market. This morning, the weekly jobless claims number came in substantially worse than expected. Considering yesterday’s ADP estimate of jobs created last month was also a disappointment, expectations for the big release tomorrow of the Jobs Report from the Department of Labor are falling and, of course, so is the market.
When bears are roaming, many investors sleep better, if they are sitting on lots of cash. And, sleeping well is more important than wringing the last ounce of performance out of the market. Some like to buy a volatility ETF to “hedge” the downdraft. Some prefer to sell growth stocks and buy dividend stocks.
Recent statistics or the trail of cookie crumbs strongly suggest that the economy is slowing down. The stock market is reflecting that. So, consider doing whatever you need to do . . . to sleep well. Better yet, talk to your financial advisor soon!