Traders Need a Manicure as Volatility Spikes

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Are you an investor or a trader? If you are a trader, you probably have been chewing your fingernails off over the last week. But if you are an investor, you should not be worried. Normal markets exhibit pull-backs and corrections multiple times a year. Sit back and relax on your diversified sofa, leisurely file your nails and recite your ABC’s. A – accelerating corporate earnings continue to accelerate as companies keep guiding higher. B – broadening manufacturing in the U.S. and Europe is keeping the global economy humming. C – consumer strength is the game-changer in the economy. Consumers are enjoying the best jobs market in decades with 4.1% headline unemployment, the lowest new jobless claims in 45 years, and a near record 5.8 million job openings. The ISM non-manufacturing surprised on the upside surging to 59.9% and consumer sentiment is near post-recession highs. Yields are finally reflating to normal, reflecting higher growth. The latest shake out may take a couple days or a couple weeks. No one knows when the recent volatility will subside. But one thing is sure, the stocks that investors complained are too expensive are now on sale. Please watch Doug Coté’s latest comments on the market.

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